Search results

Besides organizational changes in the electricity supply industry there are growing concerns about environmental issues derived from the Kyoto Protocol for the reduction of greenhouse gas emissions as well as promoting renewable energies. The purpose of this paper is to address the source side emission trading impact on electricity prices in the competitive power market.

Various schemes are suggested and are being implemented to achieve this objective. It is expected that electricity price will increase due to imposition of emission taxes. This paper analyzes the impact of electricity prices in the competitive electricity markets having a uniform market clearing price mechanism.

It is found that the electricity prices depend on the system loading, generation mix, etc. at a particular hour. Various emission trading instruments are discussed with a special emphasis on the European market.

Block bidding of the suppliers is considered whereas the demand is assumed to be inelastic.

The emission trading impacts are analyzed on a simple example.

This chapter provides an overview of the current political regulations on aviation’s climate relevant emissions in Europe, Australia, and New Zealand and of the planned regulations in other parts of the world. In a next step, the cost impacts of most of these regulations on air freight will be quantified. This way, the economic impacts of environmental regulations on air freight can be estimated.

The main results indicate that cost impacts on air freight services induced by political measures for the reduction of aviation’s climate relevant emissions turn out to be small. This is true for both local emission charges on nitrous oxide (NO _X ) and hydrocarbon (HC) emissions which are in force at a number of European airports and the European emissions trading scheme for the limitation of CO₂ emissions.

Carbon trading mechanism has been adopted to foster the green transformation of the economy on a global scale, but its effectiveness for the power industry remains controversial. Given that energy-related greenhouse gas emissions account for most of all anthropogenic emissions, this paper aims to evaluate the effectiveness of this trading mechanism at the plant level to support relevant decision-making and mechanism design.

This paper constructs a novel spatiotemporal data set by matching satellite-based high-resolution (1 × 1 km) CO₂ and PM_2.5 emission data with accurate geolocation of power plants. It then applies a difference-in-differences model to analyse the impact of carbon trading mechanism on emission reduction for the power industry in China from 2007 to 2016.

Results suggest that the carbon trading mechanism induces 2.7% of CO₂ emission reduction and 6.7% of PM_2.5 emission reduction in power plants in pilot areas on average. However, the reduction effect is significant only in coal-fired power plants but not in gas-fired power plants. Besides, the reduction effect is significant for power plants operated with different technologies and is more pronounced for those with outdated production technology, indicating the strong potential for green development of backward power plants. The reduction effect is also more intense for power plants without affiliation relationships than those affiliated with particular manufacturers.

This paper identifies the causal relationship between the carbon trading mechanism and emission reduction in the power industry by providing an innovative methodology for identifying plant-level emissions based on high-resolution satellite data, which has been practically absent in previous studies. It serves as a reference for stakeholders involved in detailed policy formulation and execution, including policymakers, power plant managers and green investors.

This paper aims to investigate the value relevance of the European Emission Allowance (EUA) return and volatility on the equity value of the top listed European Power Generation Firms for the three trading phases of the European Emission Trading Scheme.

The authors use the multifactor financial market model over the period 2005-2016 on daily basis for the return relevance relationship, whereas time series models such as autoregression moving average and generalized autoregressive conditional heteroskedasticity are applied on a weighted average portfolio of the sample firms to test serial correlation and volatility of returns.

The findings are novel in which a positive and significant relevance of EUA return on equity return is shown; however, a vanishing effect is seen as one moves to further trading phases. Another remarkable finding is that the return relationship remains constant until a certain level in EUA price then inverts. Finally, the authors present that EUA is considered a systematic factor as firm and country-specific features are not statistically significant.

At policy level, these findings signal policymakers for an appropriate design of the future trading phases in which they achieve the balance between public interests, as climate risk mitigation by reducing emissions, and the private interests of the market players to support innovative changes.

To the authors’ knowledge, this study would be the first to offer recent and comprehensive findings on the economic and financial implications of the European Emission Trading Scheme for the three trading phases. Additionally, the research offers time series robustness check besides the standard regression analysis and shows that there is an optimal EUA price that triggers polluters’ decision on emission and generation.

Purpose – Emissions trading is often heralded as an efficient approach to environmental regulation. In the mid-90s Communities for a Better Environment (CBE), a Los Angeles-based advocacy organization, raised concerns that emissions trading in the South Coast Air Basin, the most polluted region in Southern California, would result in environmental injustice. The organizations concerns received mixed responses from regulators. Historical analysis is used to assess the clash between emissions trading and environmental justice (EJ).

Methodology/approach – Emissions trading and EJ arose side by side between the 1960s and the 1990s, yet they disagree on how to clean the air. Historical analysis of legal documents, presidential addresses, letters, working papers, reports, and the like offers a better understanding of the development of emissions trading and EJ, and their intersection in environmental policy.

Findings – Emissions trading was grafted onto Clean Air Act policies not inherently designed for their incorporation. As a result, emissions trading came into direct philosophical opposition with EJ as political pressures calling for both economically efficient antiregulatory-ism and environmental equity forced their intersection. Formally, regional and national government accepted EJ as part of law. However, in principle, emissions trading undermined this acceptance. As a result, CBE could not easily win or explicitly lose its battle against emissions trading.

Originality/value of paper – Previous work on the relationship between emissions trading and EJ tend to focus on legal analysis and normative implications of emissions trading. Putting emissions trading and environment justice into historical perspective helps to illuminate larger questions about EJ activism and policy. Also, as California, the United States, and Europe turn to emissions trading to combat not only air pollution but also climate change, important lessons can be learned from the histories and collision of emissions trading and EJ.

This study estimated greenhouse gas emissions from aviation transportation and sought systems that could manage these emissions based on the IPCC guidelines to prepare for greenhouse gas regulations on international airlines. For this purpose, policies to reduce greenhouse gas emissions from aviation transportation were developed based on international agreements and the cases of advanced countries. In addition, marginal abatement costs and greenhouse gas reduction measures were derived for the effective execution of these policies. While estimating greenhouse gas emissions from aviation transportation, it was found that there has been an average increase of 3.9% and 12.9% for domestic and international flights, indicating that it is urgent that we prepare global greenhouse gas regulations. The estimated marginal abatement cost of greenhouse gas from airplanes was approximately. USD 123, and this amount could be used to decide the price of emission rights, the amount of carbon tax, and could be referred to when distributing incentives for voluntary agreements.

The measures to reduce greenhouse gas emissions for aviation transportation were classified into four types: voluntary agreements, international collaboration, greenhouse gas reduction technology and operation process development, and application of emission trading and carbon tax.

This paper aims to review the literature on carbon trading from the perspective of evolution, finds out the evolution path of these literatures and gives out the future research hotspots in this field.

Uses visualization tools (CiteSpace and HistCite) to systematically categorize the literature on carbon-trading schemes in the Web of Science core collection from 1998 to 2018, comprehensively analyzes carbon-trading schemes from four dimensions, namely, discipline evolution, keyword evolution, citation cluster evolution and citation path evolution.

Research on carbon-trading schemes has a specific development and evolution path along four dimensions, namely, in the discipline dimension, the largest change lies in the mathematics pointed to by at least four different disciplines; the keyword evolution dimension shows a gradual deepening emphasis on coordinated development; citation clusters identify three major clusters – carbon prices, China’s carbon trading, carbon market and supply chain; and citation paths identify three major evolutionary paths, the most important of which shows that “What affects carbon price?” has changed to “What is the impact of carbon prices?”

Reveals the evolution path of carbon trading research studies and proposes four possible development directions for carbon-trading scheme research, which is helpful for future carbon trading-related research and serves as a reference for the promotion of and improvements in carbon-trading schemes.

The efficiency of the emission trading system (ETS) may help to control the total emission amount. The purpose of this paper is to investigate the generating cost issue in environmental/economic power dispatch, under the premise that the ETS has already been established.

The emission benefit and price level factors are introduced for transforming the bi‐objective optimization problem with the fuel cost and emission cost minimization into a single objective. In the developed mathematical model, both the total emission amount from all units and the permitted emission amount from each generating unit are taken into account. The successive linear programming method is employed to solve the optimization problem.

Simulation results of the IEEE 30‐bus test system show that a proper trading mechanism of emission permits is very important for generation companies to control the total emission amount and to reduce the overall generation cost.

Further research is needed to find out the impact on the generating cost caused by trading price fluctuation and the coping strategies.

The results can help to meet the requirements of current generating optimal dispatch.

This chapter examines the UK and the Nigerian approach to reducing emission of greenhouse gases (GHGs) into the environment as a result of gas flaring utilising the market-based regulation. Determining how different jurisdictions fare in the quest to reduce GHG emissions associated with the oil and gas industry is essential because: policy makers have realised the advantages of market-based regulation over the command-and-control regulation; and in the light of various pledges different countries have made in different forum to reduce the emission of GHGs, particularly in the wake of the recently held Paris climate change conference.

Library-based approach is used, providing conceptual and theoretical understanding of climate change, GHG emissions and various market-based regulatory tools utilised in the United Kingdom and Nigeria in regulating emission associated with operations in the oil and gas industry.

The study reveals the significance of environmental regulations that encourage region integration and flexibility in the implementation of environmental policies. Moreover, it finds that the Paris Agreement re-affirms the utilisation of market-based regulations and indicates a future for investment in the oil and gas industry.

The study revealed that there are lacunas in regulations and strategies for the implementation of environmental regulations which need to be addressed in order to achieve zero or a significant decrease in gas flaring.

This study provided an ample opportunity to theoretically examine market-based regulatory tools utilised in the oil and gas industry in a developed country in relation to a developing country.