Energy efficiency promotion backfires under cap-and-trade

Major climate-cum-energy policies and respective impact projections rest on the widespread belief that increased energy efficiency can be equated with savings in energy use and emissions. This belief is flawed. Due to the rebound effect emissions savings from energy efficiency improvements will be generally less than what is technically feasible, or even be reversed. By means of an analytical general equilibrium model we demonstrate the latter to be true in a case that is both stark and relevant: if electricity generation is subject to a cap-and-trade scheme with partial coverage, increased efficiency of electric devices leads unambiguously to increased carbon emissions. The result implies that a proper distinction between the energy rebound and the carbon rebound is warranted, and that public policy must carefully consider the interactions between energy efficiency promotion and carbon pricing.     

转变城市发展方式之低碳城市建设——基于德国经验借鉴

首先从产业能源体系、低碳交通网络及生态环境三方面梳理德国低碳城市建设实践,然后总结德国在低碳意识培养、战略目标制定、政策体系建设等方面值得借鉴的经验,最后从“公平-效率-质量”视角为我国低碳城市建设提出建设路径:加快创新驱动,提高建设效率;提供制度支持,注重建设公平;强调以人为本,提升建设质量。     

Price competition between green and non green products under corporate social responsible firm

This article deals with a newsvendor inventory model in light of green product marketing of corporate social responsible firms. In this model, comparison between green and non green marketing is analyzed including subsidy and tax implementation by Government where the Government offers higher subsidy and lower tax to the green producer unlike the lower subsidy and higher tax to the non green producer. There is also price contest between green and non green producer as the demands of the products are dependent on sales price, carbon emission and corporate social responsibility index. Assuming the cost and profit parameters, an expected profit function of the systems is formulated and maximized analytically. Finally, numerical examples are illustrated to justify the proposed model.     

What caused Japan’s Great Stagnation in the 1990s? Evidence from an estimated DSGE model

Despite the widespread belief that Japan’s “Great Stagnation” in the 1990s is due to the financial dysfunction after the collapse of asset price bubbles, Hayashi and Prescott (2002) argue that its main cause is a slowdown in total factor productivity growth, using a calibrated neoclassical growth model. The present paper aims to fill this gap by estimating a New Keynesian dynamic stochastic general equilibrium model augmented with a financial accelerator mechanism and associated financial shocks. Our estimation results show that even in the presence of the financial shocks an adverse neutral technology shock mainly induced the Great Stagnation and that the rate of neutral technological change is strongly correlated with all enterprises’ financial position in the Tankan. Based on these findings, the paper argues that the Great Stagnation was caused by an adverse neutral technology shock that is likely to represent a tightening of firms’ financing, which induced reduction of R&D investment and misallocation of resources as indicated in previous literature.     

Voluntary carbon offsetting: Who does it?

Voluntary carbon offsetting was popularised during the last decade, particularly by airlines, as a tool to ‘neutralise’ emissions associated with travel. Although there is a wide range of carbon offsetting schemes for tourism, the uptake of these programs has been reportedly low. Regardless, little research has explored the visitor segments who voluntarily undertake carbon offsetting. Consequently, this research investigates the prevalence of carbon offsetting amongst international tourists to Australia between 2008 and 2010 and, using cluster analysis, segments the carbon offsetters into three distinct markets. Findings reveal a stable carbon offsetting market, despite a Global Financial Crisis occurring during the reference period. Further, travellers from the United Kingdom/Europe were more likely to carbon offset, while those from Asia were less likely to participate in the schemes. Thus, this could indicate that the social marketing, public discourse and substantial media coverage in the United Kingdom/Europe had enhanced climate change mitigation behaviours.     

环境与就业维度下出口商品结构优化——以江苏为例

利用计量方法从环境和就业这两个指标来考察江苏出口商品结构优化,其中环境指标主要是通过碳排放指标来体现的。通过研究发现江苏九大类出口商品在环境和就业指标上都无此消彼长现象,其中对两指标都具显著影响力的为机械及运输设备,化学品及有关产品和按原料分类的制成品这两类出口商品仅对环境有着显著影响力,对就业不具显著影响力,至于其他种类的出口商品则对环境和就业这两个指标都不具显著影响力,最后得出江苏出口商品结构优化的最明确方向,即大力促进机械及运输设备的出口,抑制化学品及有关产品和按原料分类的制成品这两类出口商品的出口。     

Effects of land urbanization and land finance on carbon emissions: A panel data analysis for Chinese provinces

The rapid urbanization in China comes with several economic, social, and environmental issues, most of which are related to land use. This study contributes to research on the land–growth–environment nexus by investigating the effect of land urbanization and land finance on carbon emissions in China from 2004 to 2013 using the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model. Results show that land finance and land urbanization significantly affect carbon emissions. The rate of land urbanization contributes to the reduction of carbon emissions; however, it has less impact compared with other determinants. The effect of land finance and land urbanization on carbon emissions indicates that a local government’s willingness to lease land for revenue aggravates carbon emissions. Economic growth and industrial structure also influence carbon emissions. Furthermore, the land requisition system and rural land conversion market should be enhanced through the guidance provided by the 13th Five-Year Plan (2016–2020) to promote the diversification of land transfer, fully consider regional differences, and establish a distinct policy focus that can contribute to emission reduction and land use.     

Renewable energy and low-carbon policy spillover effects on natural gas demand

Recent legislation intended to increase the use of renewable energy sources and lower the amount of carbon dioxide emissions from energy has changed the structure of energy markets. The effect of these policies on carbon-intensive fuel sources is rather obvious. For natural gas, though, the effect is not immediately clear. This letter uses a structural model of natural gas demand to uncover whether these policies have led to increased demand because natural gas is a relatively clean source of energy that couples well with renewables or if these policies have crowded out natural gas on net.     

Exchange rate effect on carbon credit price via energy markets

This paper examines the impact of currency exchange rates on the carbon market. We scrutinize this effect through the European Union Emission Trading Scheme (EU-ETS), which primarily uses two substitutable fossil energy inputs for the generation of electricity: coal and natural gas. The European coal market is directly driven by global coal markets that are denominated in USD, whereas, natural gas is mainly imported from Russia and is denominated in Euros. The impulse response functions of a Structural Vector Autoregression (SVAR) model demonstrate that a shock in the Euro/USD exchange rate can be transmitted through the channel of energy substitution between coal and natural gas, and influence on the carbon credit market.     

Effects of carbon emission reduction policies on transportation mode selections with stochastic demand

We are witnessing more frequent extreme weather events due to the global warming. There is an urgent need for governments, industries, general public, and academics to take coordinated actions in order to tackle the challenges imposed by the climate change. It is essential to incorporate the environmental objective in the transportation mode selection problem as transportation is a main contributor to carbon emissions. With this in mind, our paper studies the retailer’s ordering and transportation mode selection problem using stochastic customer demand and investigates the optimal ordering and transportation mode selection decisions under different carbon emission reduction policies. Our analytical results reveal that there are some important transportation mode shifting thresholds under different carbon emissions reduction policies. These findings do not only help firms to make optimal decisions under different carbon emission reduction policies but also support policy makers to develop effective policies on carbon emissions reduction.