Search

Begin New Search
Proceed to Checkout

Search Results for All:
(Showing results 1 to 2 of 2)



When and Under What Conditions Does an Emission Trading Scheme Become Cost Effective?

Hongyan Zhang, Lin Zhang, and Ning Zhang

Year: 2024
Volume: Volume 45
Number: Number 2
DOI: 10.5547/01956574.45.2.hzha
View Abstract

Abstract:
This paper studies when and under what conditions the actions undertaken by the power plants involved in China's emission trading scheme (ETS) pilot became cost effective. Based on unique plant-level panel data and the difference-in-differences strategy, we identify that an insignificant initial reduction in cost efficiency occurred at the announcement stage for power plants in the pilot provinces; however, the cost efficiency of the pilot plants increased significantly following formal policy implementation. Additionally, the by-stage treatment effects differed across the pilot provinces due to localized market and non-market variations. Localized conditions of higher marketization, stricter policy enforcement, and lower carbon dependence enhanced this positive effect. The synthetic control results confirmed this variation in the policy effects. The carbon trading pilots resulted in improved efficiency in power plants in Shanghai, Guangdong, and Tianjin during the period 2013–2017, with an associated total cost saving of approximately 29.75 million RMB. To enhance the efficacy of the ETS policy, our findings suggest that the design of the policy should consider localized external factors.



The Effects of The Multi-Target Policy on Green Productivity: Evidence from China’s Fossil Fuel Power Plants

Yu Zhao, Yunning Ma, Yongrok Choi, and Ning Zhang

Year: 2024
Volume: Volume 45
Number: Number 3
DOI: 10.5547/01956574.45.3.yzha
View Abstract

Abstract:
We propose the non-radial meta-frontier global Luenberger productivity index, which addresses the issues of technology heterogeneity, slack variable, and linear programming infeasibility, and decompose it based on the technology perspective and factor perspective. With the dataset of China's power plants from 2005 to 2015, we identify the effects of the multi-targets, including energy-saving targets and SO2 reduction targets, in the 12th Five-Year Plan on green productivity encompassing all channels of effects. A 1% increase in the average energy-saving target cumulatively increases green productivity by 0.50%, while a 1% increase in the average SO2 reduction target cumulatively decreases that by 0.03%. In all channels, the technology leadership effect and generation efficiency exhibit sensitivity. Differential effects of the multi-targets on state-owned versus non-state-owned plants imply significant differences in observed production technology.





Begin New Search
Proceed to Checkout

 

© 2024 International Association for Energy Economics | Privacy Policy | Return Policy