气候变化领域集成服务门户(CCPortal): Effects of allowance allocation rules on green technology investment and product pricing under the cap-and-trade mechanism

CCPortal

DOI	10.1016/j.enpol.2020.111333
	Effects of allowance allocation rules on green technology investment and product pricing under the cap-and-trade mechanism
	Yang W.; Pan Y.; Ma J.; Yang T.; Ke X.
发表日期	2020
ISSN	0301-4215
卷号	139
英文摘要	Grandfathering and benchmarking are two typical initial allowance allocation rules under the Cap-and-Trade (C&T) mechanism. They establish an emission limit which carbon emission generating enterprises is permitted. To avoid penalties caused by excessive emissions or to gain profits by selling saved portions of the allowance in the carbon trading market, enterprises can invest in green technology for achieving emission reduction which results in increasing cost and leads to a change in pricing strategies. This paper formulates mathematical models to quantify the optimal green technology investment and product pricing, and compare the effects of the two allocation rules on these operational decisions and total emission. The analytical results indicate that compared to benchmarking the optimal product price under the grandfathering rule is higher. Grandfathering will induce greater emission reduction. However, benchmarking is more likely to encourage enterprises to invest in green technologies for improving their energy efficiency. Moreover, the initial emission allowance under the grandfathering rule will not affect the green technology investment. However, the benchmark emission intensity will influence the green technology decision under the benchmarking rule. When choosing from two green technologies, investment in cleaner green technologies will not be authorized, in some instances, under a range of scenarios. © 2020 Elsevier Ltd
英文关键词	Benchmarking; Cap-and-trade mechanism; Grandfathering; Green technology investment; Initial allowance allocation rules; Product pricing
语种	英语
scopus关键词	Benchmarking; Carbon; Economics; Emission control; Energy efficiency; Environmental technology; Investments; Allocation rule; Cap and trade; Grandfathering; Green technology; Product pricing; Costs; benchmarking; carbon emission; emissions trading; green economy; investment; pricing policy; technological development
来源期刊	Energy policy
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/124793
作者单位	Center for Modeling and Optimization of Complex Management Systems (CMOCMS), College of Management, Shenzhen UniversityGuangdong 518060, China; College of Economics, Shenzhen UniversityGuangdong 518060, China
推荐引用方式 GB/T 7714	Yang W.,Pan Y.,Ma J.,et al. Effects of allowance allocation rules on green technology investment and product pricing under the cap-and-trade mechanism[J],2020,139.
APA	Yang W.,Pan Y.,Ma J.,Yang T.,&Ke X..(2020).Effects of allowance allocation rules on green technology investment and product pricing under the cap-and-trade mechanism.Energy policy,139.
MLA	Yang W.,et al."Effects of allowance allocation rules on green technology investment and product pricing under the cap-and-trade mechanism".Energy policy 139(2020).