A market instrument to achieve carbon neutrality: Is China's energy-consumption permit trading scheme effective?

Zhang, Y; Guo, S; Shi, X; Qian, X; Nie, R

A market instrument to achieve carbon neutrality: Is China's energy-consumption permit trading scheme effective?

Zhang, Y Guo, S Shi, X

Qian, X Nie, R

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Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Applied Energy, 2021, 299, pp. 117338-117338
Issue Date:: 2021-10-01

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Field	Value	Language
dc.contributor.author	Zhang, Y
dc.contributor.author	Guo, S
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.contributor.author	Qian, X
dc.contributor.author	Nie, R
dc.date.accessioned	2021-09-17T08:13:27Z
dc.date.available	2021-09-17T08:13:27Z
dc.date.issued	2021-10-01
dc.identifier.citation	Applied Energy, 2021, 299, pp. 117338-117338
dc.identifier.issn	0306-2619
dc.identifier.uri	http://hdl.handle.net/10453/150623
dc.description.abstract	The Chinese government implemented the energy-consumption permit trading scheme (ECPTS) pilot program in 2016, in order to achieve energy saving and carbon reduction. Based on the PSM-DID model, we attempt to test the effects of the ECPTS on energy consumption and energy intensity. With a counterfactual simulation, this paper also evaluates the potential gains and different mechanisms of this policy. The results show that, under the constraints of the established resources and policy efficiency, there is a positive relationship between the ECPTS and low-carbon economic transformation; the implementation of the above policy in the pilot provinces brought about an average energy saving of 43 Mtce during the period of 2016–2019. However, the potential gains of this policy need to be further increased to meet China's energy control targets. Additionally, a complete mediating effect of the energy structure indicates that the impact of the ECPTS on energy consumption and energy intensity depends significantly on energy structure adjustments. Finally, this paper highlights the key policy implications associated with the empirical results.
dc.language	en
dc.publisher	Elsevier BV
dc.relation	National Natural Science Foundation of China71828401
dc.relation.ispartof	Applied Energy
dc.relation.isbasedon	10.1016/j.apenergy.2021.117338
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject	09 Engineering, 14 Economics
dc.subject.classification	Energy
dc.title	A market instrument to achieve carbon neutrality: Is China's energy-consumption permit trading scheme effective?
dc.type	Journal Article
utslib.citation.volume	299
utslib.for	09 Engineering
utslib.for	14 Economics
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	open_access	*
utslib.copyright.embargo	2023-10-01T00:00:00+1000Z
dc.date.updated	2021-09-17T08:13:26Z
pubs.publication-status	Accepted
pubs.volume	299

Abstract:

The Chinese government implemented the energy-consumption permit trading scheme (ECPTS) pilot program in 2016, in order to achieve energy saving and carbon reduction. Based on the PSM-DID model, we attempt to test the effects of the ECPTS on energy consumption and energy intensity. With a counterfactual simulation, this paper also evaluates the potential gains and different mechanisms of this policy. The results show that, under the constraints of the established resources and policy efficiency, there is a positive relationship between the ECPTS and low-carbon economic transformation; the implementation of the above policy in the pilot provinces brought about an average energy saving of 43 Mtce during the period of 2016–2019. However, the potential gains of this policy need to be further increased to meet China's energy control targets. Additionally, a complete mediating effect of the energy structure indicates that the impact of the ECPTS on energy consumption and energy intensity depends significantly on energy structure adjustments. Finally, this paper highlights the key policy implications associated with the empirical results.

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http://hdl.handle.net/10453/150623