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1 – 10 of over 11000This article purports to show that an adequate anti-money laundering (AML) regime must be integrated into the carbon emissions market industry in order for it to function…
Abstract
Purpose
This article purports to show that an adequate anti-money laundering (AML) regime must be integrated into the carbon emissions market industry in order for it to function effectively, meet its intended goals, and prevent criminals from developing innovative methods to take advantage of particular vulnerabilities this unique market type has created.
Design/methodology/approach
This article discusses the formation of the international carbon emissions marketplace. It posits that critical to the formation and effective operation of any carbon emissions trading market is the simultaneous coexistence of an AML regime preventing criminals from taking advantage of legislative deficiencies. Lastly, the article formulates and analyzes emerging criminal typology threats to which current, developing, and future carbon emissions markets are and will be subject.
Findings
Under the EU ETS, effective AML safeguards were not initially included in the implementation and formation of the EU's carbon emissions trading market, subjecting it to numerous threats and abuses from criminals. The lack of an effective AML regime has resulted in novel and unique criminal typology threats that are currently emerging and need to be addressed to prevent abuses in new and existing carbon emissions trading markets.
Research limitations/implications
The EU has recently started addressing its lack of effective AML safeguards in its carbon emissions trading market. As such, the adequacy of legislative developments needs to be examined over time. Additionally, because many of the emerging criminal typologies identified are based on recent and limited data, further research on the extent of criminality that is actually occurring is recommended.
Originality/value
Because emerging criminal typology threats in carbon emissions trading markets has not been researched at the scholarly level, this article is unique and has substantial value to the AML community.
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Annela Anger-Kraavi and Jonathan Köhler
This chapter considers the application of climate mitigation policies to the aviation sector with reference to the inclusion of aviation in the EU Emissions Trading System (EU…
Abstract
Purpose
This chapter considers the application of climate mitigation policies to the aviation sector with reference to the inclusion of aviation in the EU Emissions Trading System (EU ETS). Assessments of the possible economic impacts of including aviation in the EU ETS are reviewed and an impact analysis using the macroeconometric E3ME model is conducted.
Originality
The aviation sector is a significant and rapidly increasing source of GHG emissions. Because international policy measures have not been agreed, the EU has incorporated aviation in the EU ETS. It is therefore important to consider the possible economic effects of the ETS on the aviation industry and the wider economy.
Methodology/approach
The paper describes the approach used by the EU to include aviation in the EU ETS. Assessments of economic impacts have been made, but have often been limited in their approach. The paper complements the existing literature by including an economic analysis using the E3ME macroeconometric model of the EU that covers 41 industrial sectors including aviation.
Findings
Microeconomic and macroeconomic assessments show the economic impacts of including the aviation sector in the EU ETS are small. The negative impacts, if any, on EU GDP and the air transport sector’s economic output are less than 0.1% and 1% respectively. Distortions in competition, both between countries and industrial sectors, are therefore likely to be small.
Implications
In the long term (beyond 2020), including aviation in the EU can be seen as a positive move. If and when aviation is fully included in the EU ETS, and when the cost impacts of GHG emissions through permit prices are made evident, it is anticipated that airlines will start monitoring and reducing their GHG emissions by investing in new, less carbon intensive technologies.
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Qin Wang, Hui Gao, Fushuan Wen, Iain MacGill and Jiansheng Huang
The purpose of this paper is to overview the development of China's emission trading, which is transforming environmental policy measures from traditional command and control…
Abstract
Purpose
The purpose of this paper is to overview the development of China's emission trading, which is transforming environmental policy measures from traditional command and control regulations to business‐led decision making within government initiated environmental markets, and investigates the main factors that affect China's policy making with regards to further climate changes.
Design/methodology/approach
This paper is based on the authors' review of the literatures on emissions trading program in China and their critical analysis.
Findings
Initially China's environmental protection policies were focused principally upon the reduction of sulfur dioxide (SO2) emissions for improving air quality. Since the authorization of the Kyoto Protocol in 2002, project‐based activities such as Clean Development Mechanism producing carbon credit developed rapidly. However, the implementation of carbon dioxide emission trading is still under discussion and research is much inferior to that of SO2 emission trading. The barriers of and suggestions for designing future emissions trading market are also discussed.
Originality/value
This review helps to raise awareness and understand possible scenarios for emission trading in China.
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Peng Nai, Yuqing Luo and Guang Yang
This study aims to propose a set of institutional frameworks, as well as practical polices and steps, with a view to facilitating the establishment of a unified carbon trading…
Abstract
Purpose
This study aims to propose a set of institutional frameworks, as well as practical polices and steps, with a view to facilitating the establishment of a unified carbon trading market in China.
Design/methodology/approach
Based on existing empirical studies and reviews of the socioeconomic contexts, this study followed a qualitative approach consisting of secondary data collection and analysis, semi-structured interviews to collect primary data and comparative analysis.
Findings
The establishment of a national carbon trading market in China is a systemic and complex process which requires coordination among various concerned government agencies and supporting mechanisms. Currently, the development of a unified national carbon market has been impeded by the lack of coordination among local pilot programs, and there is no specific law passed by the People’s Congress or by its Standing Committee to regulate the emerging carbon trading market. It is of vital importance for China, in terms of both practical and strategic aspects, to take a gradualist approach in establishing laws and institutions to guide and support the development of its emerging carbon market.
Research limitations/implications
This present study forms a part of a regional research project aiming to identify sound policy approaches for the establishment of a carbon trading market in China. Due to scope reasons, it focuses only on policy analysis and recommendations.
Originality/value
China’s emerging national carbon trading market has attracted much research attention. However, little has been done from the perspectives of legislations and policies.
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Bowen Yang, Liping Liu and Yanhui Yin
Legislation plays a vital role in solving carbon emissions reduction and climate change issues. China began to implement a low-carbon economic policy in 2010, but the effect of…
Abstract
Purpose
Legislation plays a vital role in solving carbon emissions reduction and climate change issues. China began to implement a low-carbon economic policy in 2010, but the effect of the policy needs to be evaluated. Accordingly, this paper aims to discuss China’s low-carbon policy through exploring the following two questions, namely, whether the policy effect reaches the expected goal and whether the policy effects will balance economic development and emission reduction. Then, the paper puts forward suggestions for the improvement of China’s low-carbon policy.
Design/methodology/approach
This paper is organized around three distinct aspects of policy effect evaluation. This paper uses the synthetic control method to construct a policy effect evaluation model and conducts a quasi-natural experiment. The paper selects annual panel data from 2003 to 2015, which is selected from 33 provinces. A comparative analysis of carbon dioxide emissions, energy consumption and economic development between Hubei Province and Liaoning Province.
Findings
The results reveal that the implementation of the low-carbon pilot province policy in 2010 has a significant impact on the emission reduction effect of Liaoning Province, but the impact on the emission reduction effect of Hubei Province is not significant. The carbon emission trading system implemented in 2012 has reduced the emission reductions in Hubei Province and Liaoning Province has achieved better emission reduction effects after the implementation of this policy. After the implementation of the policy, the economic development of Hubei Province has been improved, but it has not brought help to the economic development of Liaoning Province. These findings provide new insights into the use of an emissions trading system for improving economic development and ultimately facilitate the attainment of the broader goal of sustainability.
Originality/value
This paper proposes an innovative policy effect evaluation method by considering the status of unit gross domestic product, fixed asset investment in the energy industry, energy consumption, emission reduction technology innovation and other evaluation indicators. This paper contributes to broadening current methods of policy effect evaluation in China.
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Augustine Senanu Komla Kukah, Jin Xiaohua, Robert Osei-Kyei and Srinath Perera
This study aims to undertake a review of how carbon trading contributes to a reduction in emission of greenhouse gases (CHGs).
Abstract
Purpose
This study aims to undertake a review of how carbon trading contributes to a reduction in emission of greenhouse gases (CHGs).
Design/methodology/approach
A narrative literature review approach was adopted to identify and synthesise existing literature using the Scopus and Web of Science databases. Articles were limited to the past 10 years to obtain the most current literature. The various ways in which carbon trading leads to reductions in emissions were identified and discussed.
Findings
The results showed that the main ways in which carbon trading contributes to reductions in emissions are through innovation in low-carbon technologies, restoration of ecosystems through offset money, development of renewable and clean energy and providing information on investment related to emissions.
Practical implications
The value of this study is to contribute to the built environment’s climate change mitigation agenda by identifying the role of carbon trading.
Originality/value
The output of this research identifies and contextualises the role carbon trading plays in the reduction of CHG emissions.
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Augustine Senanu Komla Kukah, Xiaohua Jin, Robert Osei-Kyei and Srinath Perera
This conceptual paper aims to develop a theoretical framework for carbon trading in the built environment through theories to expand current knowledge on components of carbon…
Abstract
Purpose
This conceptual paper aims to develop a theoretical framework for carbon trading in the built environment through theories to expand current knowledge on components of carbon trading systems.
Design/methodology/approach
This theoretical framework was developed and supported with existing theories and past empirical literature from built environment, economics and finance. Underlying theories used in the framework were selected due to their significance and applicability to carbon trading projects. Hypotheses set in the study summarise the propositions developed from the theories and past empirical literature.
Findings
The framework reveals four major components of carbon trading for the built environment. Six hypotheses were further proposed to unravel the resultant influence of their interactions on each component in the trading system.
Research limitations/implications
This paper sought to undertake a theoretical review of classical theories and past studies on carbon trading. Even though a systematic review was undertaken, the constructs in the theoretical framework may not be exhaustive.
Practical implications
This study contributes and advances the body of knowledge on the components that comprise the mechanism of how carbon trading operates in the built environment. Theoretically, the framework developed serves as a multi-dimensional guide on the operations of carbon trading in the built environment.
Originality/value
The theoretical framework developed endeavours to consolidate multi-faceted theories from varying disciplines on the components that comprise carbon trading in the built environment.
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Yuyan Wang, Fei Lin, T.C.E. Cheng, Fu Jia and Yulin Sun
The purpose of this study is to investigate which of the two carbon allowance allocation methods (CAAMs), i.e. grandfathered system carbon allowance allocation (GCAA) and baseline…
Abstract
Purpose
The purpose of this study is to investigate which of the two carbon allowance allocation methods (CAAMs), i.e. grandfathered system carbon allowance allocation (GCAA) and baseline system carbon allowance allocation (BCAA), is more beneficial to capital-constrained supply chains under the carbon emission allowance repurchase strategy (CEARS).
Design/methodology/approach
Adopting CEARS to ease the capital-constrained supply chains, this study develops two-period game models with manufacturers as leaders and retailers as followers from the perspective of profit and social welfare maximization under two CAAMs (GCAA and BCAA), where the first period produces normal products, and the second period produces low-carbon products.
Findings
First, higher carbon-saving can better use CEARS and achieve a higher supply chain profit under the two CAAMs. However, the higher the end-of-period carbon price is, the lower the social welfare is. Second, when carbon-saving is small, GCAA achieves both economic and environmental benefits; BCAA reduces carbon emissions at the expense of economic benefit. Third, the supply chain members gain higher profits and social welfare under GCAA, so the government and supply chain members are more inclined to choose GCAA.
Originality/value
By analyzing the profits and total carbon emissions of capital-constrained supply chains under GCAA and BCAA, this study provides theoretical references for retailers and capital-constrained manufacturers. In addition, by comparing the difference in social welfare under GCAA and BCAA, it provides a basis for the government to choose a reasonable CAAM.
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Jui-Chu Lin, Wei-Ming Chen and Ding-Jang Chen
In this paper, the international progress of Nationally Appropriate Mitigation Actions (NAMAs), Intended Nationally Determined Contributions (INDCs), and Nationally Determined…
Abstract
Purpose
In this paper, the international progress of Nationally Appropriate Mitigation Actions (NAMAs), Intended Nationally Determined Contributions (INDCs), and Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change are reviewed. The content of Taiwan’s NAMAs and INDCs are also investigated, especially with reference to actions for the electricity sector. To better understand the greenhouse gas (GHG) reduction contribution from the electricity sector, this paper aims to examine challenges and solutions for implementing a carbon trading mechanism in Taiwan’s monopolistic electricity market under the newly passed Greenhouse Gases Emissions Reduction and Management Act (GHG ERMA).
Design/methodology/approach
Carbon reduction strategies for the electricity sector are discussed by examining and explaining Taiwan’s official documents and the law of GHG ERMA.
Findings
This study finds that market mechanisms should be utilized to allocate appropriate costs and incentives for GHG reductions to transform Taiwan into a low-carbon society.
Originality/value
This study identifies strategies for the electricity sector to reduce GHG emissions, especially the operation of a carbon-trading scheme under a non-liberalized electricity market.
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Patrick T.I. Lam, Edwin H.W. Chan, Ann T.W. Yu, Wynn C.N. Cam and Jack S. Yu
This paper aims to investigate how unique features of built facilities would affect the application of greenhouse gas (GHG) emissions trading, and to explore what adaptive…
Abstract
Purpose
This paper aims to investigate how unique features of built facilities would affect the application of greenhouse gas (GHG) emissions trading, and to explore what adaptive measures may be taken for emissions trading to be applied to the built environment. Emissions trading is a financial tool to encourage GHG emissions reduction in various industries. As the building sector is responsible for a large amount of GHG emissions, it is valuable to explore the application of emissions trading in built facilities.
Design/methodology/approach
The analysis is based on a comparative study reviewing the current emissions trading schemes (ETSs) in Australia, Japan and the UK covering the building industry, and to evaluate the approaches adopted by the schemes to tackle the problems related to buildings and facilities management.
Findings
The research findings reveal that the small energy savings of individual building units, the large variety of energy-saving technologies and the split incentives and diverse interests of building owners and tenants would be the barriers hindering the development of emissions trading. To overcome these barriers, an ETS should allow its participants to group individual energy savings, lower the complexity of monitoring and reporting approaches and allow owners and tenants to benefit from emissions trading.
Originality/value
This article provides a comprehensive overview of the current emissions trading practices in the built environment. Besides, it raises the attention and consciousness of policymakers to the need that building characteristics and facilities management should be taken into consideration when designing an ETS for the building sector.
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