Research on the emission reduction effects of carbon trading mechanism on power industry: plant-level evidence from China
International Journal of Climate Change Strategies and Management
; 15(2):212-231, 2023.
Article
in English
| ProQuest Central | ID: covidwho-2296135
ABSTRACT
PurposeCarbon 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.Design/methodology/approachThis paper constructs a novel spatiotemporal data set by matching satellite-based high-resolution (1 × 1 km) CO2 and PM2.5 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.FindingsResults suggest that the carbon trading mechanism induces 2.7% of CO2 emission reduction and 6.7% of PM2.5 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effect is significant for power plants operated with different technologies and is more pronounced for those with outdated production technology, indicating the strong potential for green development of backward power plants.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.Originality/valueThis 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.
Environmental Studies; Emission reduction; Carbon trading mechanism; Green finance; Sustainable energy; Green development; Satellite data; Emissions trading; Clean technology; Spatiotemporal data; Greenhouse gases; Genetic transformation; Carbon dioxide; Human influences; Climate change; Industrial plant emissions; Emissions control; COVID-19; Resolution; Power plants; Collective action; Coal-fired power plants; Climate policy; Reduction; Carbon; High resolution; Electric industries; Effectiveness; Impact analysis; Design; Compliance; Plants; Coronaviruses; Decision making; Fossil fueled power plants; Methods; Anthropogenic factors; Coal; Environmental regulations; Emission analysis; Clean energy; Gas-fired power plants; Satellites; Developing countries--LDCs; Energy; Environmental policy; Greenhouse effect; Particulate matter emissions; Emissions; Electricity; Costs; Carbon dioxide emissions; Particulate matter; Emission standards; China
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Type of study:
Experimental Studies
Language:
English
Journal:
International Journal of Climate Change Strategies and Management
Year:
2023
Document Type:
Article
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