China has launched a national level carbon emissions trading market with a rate-based cap and benchmarks in the power generation sector. This emissions trading system (ETS) differs from a mass-based one, which lacks an absolute carbon cap. This study assesses the impact of such an unconventional ETS on economic development, carbon emission mitigation, and power system transition by applying a multi-regional dynamic computable general equilibrium model. The results show that ETS can facilitate the decarbonisation of the power sector and reduce carbon intensities of coal and gas power, the two technologies covered at the first stage of China's ETS. Furthermore, power generation of these technologies will be decreased significantly, and a noticeable fallback of electrification will occur. National GDP loss under a rate-based cap is slightly higher than the one under a mass-based cap, while provincial GDP losses have close relations with coal phaseout and permit scarcity.
Yu Z., Geng Y., Calzadilla A. and Bleischwitz R. (2022) China's unconventional carbon emissions trading market: The impact of a rate-based cap in the power generation sector. 255: 124581. 10.1016/j.energy.2022.124581
@article{Yu2022,
Title = {China's unconventional carbon emissions trading market: The impact of a rate-based cap in the power generation sector},
Author = {Yu, Zhongjue and Geng, Yong and Calzadilla, Alvaro and Bleischwitz, Raimund},
Editor = {},
Year = {2022},
Pages = {124581},
Volume = {255},
Doi = {10.1016/j.energy.2022.124581},
Abstract = {China has launched a national level carbon emissions trading market with a rate-based cap and benchmarks in the power generation sector. This emissions trading system (ETS) differs from a mass-based one, which lacks an absolute carbon cap. This study assesses the impact of such an unconventional ETS on economic development, carbon emission mitigation, and power system transition by applying a multi-regional dynamic computable general equilibrium model. The results show that ETS can facilitate the decarbonisation of the power sector and reduce carbon intensities of coal and gas power, the two technologies covered at the first stage of China's ETS. Furthermore, power generation of these technologies will be decreased significantly, and a noticeable fallback of electrification will occur. National GDP loss under a rate-based cap is slightly higher than the one under a mass-based cap, while provincial GDP losses have close relations with coal phaseout and permit scarcity.},
}
TY - JOUR
AU - Yu, Zhongjue
AU - Geng, Yong
AU - Calzadilla, Alvaro
AU - Bleischwitz, Raimund
TI - China's unconventional carbon emissions trading market: The impact of a rate-based cap in the power generation sector
PY - 2022
SP - 124581
VL - 255
DO - 10.1016/j.energy.2022.124581
AB - China has launched a national level carbon emissions trading market with a rate-based cap and benchmarks in the power generation sector. This emissions trading system (ETS) differs from a mass-based one, which lacks an absolute carbon cap. This study assesses the impact of such an unconventional ETS on economic development, carbon emission mitigation, and power system transition by applying a multi-regional dynamic computable general equilibrium model. The results show that ETS can facilitate the decarbonisation of the power sector and reduce carbon intensities of coal and gas power, the two technologies covered at the first stage of China's ETS. Furthermore, power generation of these technologies will be decreased significantly, and a noticeable fallback of electrification will occur. National GDP loss under a rate-based cap is slightly higher than the one under a mass-based cap, while provincial GDP losses have close relations with coal phaseout and permit scarcity.
ER -
