Achieving Copenhagen target through carbon emission trading: Economic impacts assessment in Guangdong Province of China

Peng Wang, Han-cheng Dai, Song-yan Ren, Dai-qing Zhao and Toshihiko Masui

Energy, 2015, vol. 79, issue C, 212-227

Abstract: This study analyzed the economic impacts of carbon ETS (emission trading scheme) policy among four energy intensive sectors in Guangdong province with a two-region dynamic CGE model. Five cases are considered to achieve Copenhagen target towards 2020 in Guangdong, including a reference case, two cases under different carbon emission constraints without carbon ETS, and two cases with ETS. The simulation results show that carbon price and economic impacts are closely related to both emission constraints and ETS. In the scenario that overshoots Copenhagen target and does not consider ETS, carbon mitigation cost of refinery and iron & steel sectors would be relatively higher whereas that of power and cement sectors would be lower, and the GDP (gross domestic production) loss would be 1.4%. On the contrary, with ETS implemented, the trading carbon price would be 38 USD (US Dollar)/ton-CO2, creating a carbon market of around 1 billion USD. Furthermore, ETS could significantly reduce the mitigation cost for the whole economy. The GDP of Guangdong province would recover by 2.6 billion USD. In addition, the economic output and employment of sectors with would be affected compared to the scenario without ETS.

Keywords: Carbon emission trading; General equilibrium model; Carbon trading price (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (111)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544214012638
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:79:y:2015:i:c:p:212-227

DOI: 10.1016/j.energy.2014.11.009

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().