 China's unconventional carbon emissions trading market: The impact of a rate-based cap in the power generation sectorZhongjue Yu, Yong Geng, Alvaro Calzadilla and Raimund Bleischwitz Energy, 2022, vol. 255, issue C 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. Keywords: General equilibrium; ETS; Renewable energy; Coal and gas power (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:255:y:2022:i:c:s0360544222014840 DOI: 10.1016/j.energy.2022.124581 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
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