Coupling Mechanism and Synergic Development of Carbon Market and Electricity Market in the Region of Beijing–Tianjin–Hebei

Yan Lu, Jing Xiang, Pengyun Geng, Huimin Zhang, Lili Liu, Haoran Wang, Jiajie Kong, Mingli Cui, Yan Li, Cheng Zhong and Tiantian Feng ()
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Yan Lu: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Jing Xiang: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Pengyun Geng: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Huimin Zhang: School of Economics and Management, China University of Geosciences, Beijing 100038, China
Lili Liu: School of Economics and Management, China University of Geosciences, Beijing 100038, China
Haoran Wang: School of Economics and Management, China University of Geosciences, Beijing 100038, China
Jiajie Kong: School of Economics and Management, China University of Geosciences, Beijing 100038, China
Mingli Cui: School of Economics and Management, China University of Geosciences, Beijing 100038, China
Yan Li: School of Economics and Management, China University of Geosciences, Beijing 100038, China
Cheng Zhong: School of Economics and Management, China University of Geosciences, Beijing 100038, China
Tiantian Feng: School of Economics and Management, China University of Geosciences, Beijing 100038, China

Energies, 2023, vol. 16, issue 4, 1-22

Abstract: The national carbon emission trading mechanism is an important policy tool for the Chinese government to control and reduce greenhouse gas emissions by using the market mechanism. The Beijing–Tianjin–Hebei power market is the focus of energy conservation and consumption reduction in China. Problems have already existed in the synergic development of the Beijing–Tianjin–Hebei power market and carbon trading market. In this article, the development status of the Beijing–Tianjin–Hebei power market is analyzed and the coupling mechanism between the carbon market and power market is combed out to build a synergism model of the carbon market and the Beijing–Tianjin–Hebei power market based on the system dynamics. From the research results, firstly, the Beijing–Tianjin–Hebei power market comes with a high energy consumption intensity and a high proportion of carbon emissions. The coupling of carbon market and power market forces the power industry to reduce carbon emissions through the effective transmission of carbon costs to power prices. Secondly, carbon price shows an upward trend in the context of the current policy scenario, which can give play to the role of price signal in the future. The revenue of thermal power plants, which are the carbon emission right sellers, with new technologies, has increased significantly, while the revenue of carbon emission right buyers, which are the manufacturers of undeveloped units, has increased less. Finally, the technical progress of thermal power plants, the introduction of auction mechanism, the increase in initial carbon price settings and the direct transmission of carbon costs are all factors that promote the effectiveness of carbon trading policy tools in the Beijing–Tianjin–Hebei power market. This study provides theoretical guidance for the synergic development of the “power-carbon” market.

Keywords: carbon emission trading; system dynamics; synergic development; energy saving and emission reduction (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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