Comparing the impacts of carbon tax and carbon emission trading, which regulation is more effective?

Hai-tao, XU; Pan, Xiongfeng; Li, Jinming; Feng, Shenghan; Guo, Shucen

doi:10.1016/j.jenvman.2022.117156

Cited by 49 publications

(16 citation statements)

References 25 publications

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“…Greenhouse Gas (GHG) emissions are a global negative externality without a price. A carbon tax or carbon price mitigates those externalities according to economic theory (Xu et al 2023). Feld and Nientiedt (2022) show that such a policy follows a liberal Hayekian principle.…”

Section: Policy Trade-offmentioning

confidence: 99%

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Herzog

2024

GLCE

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The reduction of global greenhouse gas emissions has priority due to climate change. Scientists across disciplines promote carbon taxation or carbon pricing as an instrument to mitigate the negative externality of fossil energies. We exhibit two insufficiencies of today’s regulatory policy by utilizing a novel natural experiment. First, carbon taxation is only effective if it is implemented on a global scale because fossil energy markets and emissions are cross-border and global. Second, carbon taxation is based on an extrinsic mechanism and does not alter intrinsic behaviour sustainably. Our applied theory and modelling approach is corroborating these findings. The present regulatory approach is doomed to fail due to overambitious European countries and unambitious (partly realistic) rest of the world. Our interdisciplinary analysis unravels a new agenda to achieve the essential aim. What is needed is a global climate club, as proposed by Nobel Laureate William Nordhaus, with a least but global greenhouse gas reduction.

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Section: Policy Trade-offmentioning

confidence: 99%

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Herzog

2024

GLCE

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“…Meanwhile, ER has a significantly negative impact on CEI, which confirms the conclusions of Sun et al (2020) and Zhang et al (2020). Although there are some heterogeneous impacts of different types of environmental regulation like carbon taxes and carbon trading on carbon emissions, it overall shows a negative relationship with CO 2 emissions in China currently (Xu et al, 2023). IC has a negative effect on CEI, but it is not significant, and this may relate to the increase in interregional trade and market expansion caused by transportation (Jiang et al, 2023).…”

Section: Empirical Analysesmentioning

confidence: 99%

Towards low‐carbon sustainable development under Industry 4.0: The influence of industrial intelligence on China's carbon mitigation

Tian

Qin

Cheng

et al. 2023

Sustainable Development

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Global climate change is becoming an increasingly serious issue. China, the largest carbon emitter, has a long way towards its sustainable development goals (SDGs) and take on its carbon reduction responsibility, especially in the industrial sector. In this vein, industrial intelligence, a key driver in the “Industry 4.0 era”, offers an opportunity in this carbon reduction campaign. This paper seeks to examine the influences of industrial intelligence on carbon emissions, their heterogeneous characteristics and transmission mechanisms, and the moderating role of human capital. Therefore, we properly probed theoretical aspects, and then we used China's provincial data from 2006 to 2019 and a number of tests, namely the fixed effect model, the two‐stage test, and the moderating effect model, to test the relevant assumptions. We first unfolded that industrial intelligence can significantly mitigate carbon emissions. Specifically, the heterogeneous analysis found that carbon reduction efforts are more pronounced in China's central and western regions and resource‐based regions. We further highlight the mechanism identification, which reveals that industrial structure upgrading and technological innovation are the main channels for industrial intelligence to abate CO2 emissions. Importantly, we pinpoint the role of human capital, which positively moderates the relationship between industrial intelligence and carbon emissions and can well amplify the industrial structure effect of industrial intelligence. These results are conducive to accurately assessing the environmental benefits of industrial intelligence and providing policy enlightenment for China to alleviate carbon emissions, and they will also offer a reference for other developing countries to learn from.

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“…To increase the level of abatement efforts by manufacturers and the economic performance of all supply chain members, Zhang et al [31] proposed that two-part tariff contracts with symmetric and asymmetric information should be adopted. Xu et al [2] compared the effects of carbon tax and carbon emission trading, and found that carbon tax policy will generate higher economic costs and reduce emissions more effectively than carbon emission trading. In summary, the existing studies on the impact of carbon tax policy on corporate profits, as well as emission reduction, have been well researched.…”

Section: Supply Chain Sustainability and Government Carbon Tax Policiesmentioning

confidence: 99%

“…This study assumes that carbon emissions are generated by power producers. Th decision sequence of the model is as follows: at the first stage, the power generation en terprises aim at profit maximization, and determine the sales price of electricity to th power sales enterprises w (i.e., wholesale price), and the investment level in carbon abate ment technology e. 2 2 e  is used to represent the cost of investment in carbon abatemen technology by the power generation enterprises, where  represents the correspondin cost coefficient, and the higher the  , the lower the unit investment efficiency. Mean while, the unit cost of power generation is assumed to be k. In addition, the power gene ation enterprises include revenue e  to represent the unit carbon trading revenu where  can be interpreted as the unit cost reduction factor of power generation.…”

Section: Basic Model and Assumptionsmentioning

confidence: 99%

“…Coal-fired power plants still play an essential role in the power sector of developing countries, but they are the main source of air pollution emissions [1]. To reduce greenhouse gas emissions, governments around the world have adopted a series of specific policies, among which the carbon emission tax policy is of the greatest significance, which can also be viewed as a government penalty on pollution from enterprises [2].…”

Section: Introductionmentioning

confidence: 99%

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Low-Carbon Transformation Strategy for Blockchain-Based Power Supply Chain

Pan,

Zhu,

Teng

2023

Sustainability

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Carbon abatement in the power sector is essential to achieving the “double carbon” goal, and blockchain technology, one of the most promising emerging technologies, will assist the power sector in efficiently achieving this goal. In terms of the effectiveness of carbon abatement, comparative studies on coordination mechanisms are absent in the existing literature. On this basis, aiming at the cooperative abatement strategy between power generation generators and sellers under the carbon tax policy, this paper has developed four decision models: the Stackelberg game led by power generation enterprises, the simultaneous Nash bargaining decision by both parties, the vertical integration decision by supply chain enterprises, and the cooperative carbon emission reduction game by supply chain enterprises, to analyze the changes in electricity price, sustainability level, power sales, and profits of supply chain members. The results of the numerical analysis show that user preference for blockchain technology and an increase in the proportion of low-carbon electricity information uploaded to the blockchain can significantly improve the sustainability level of the electricity supply chain. The level of investment in green technologies by electricity producers under cooperative abatement decision-making increases compared to the electricity producer-dominated Stackelberg game model. The sustainability level of the electricity supply chain is higher under the Nash simultaneous decision than under the abatement cost-sharing decision, but the decision-maker’s profit is lower. The values of overall profit and sustainability level of the electricity supply chain are both highest under the vertically integrated decision.

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Comparing the impacts of carbon tax and carbon emission trading, which regulation is more effective?

Cited by 49 publications

References 25 publications

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Towards low‐carbon sustainable development under Industry 4.0: The influence of industrial intelligence on China's carbon mitigation

Low-Carbon Transformation Strategy for Blockchain-Based Power Supply Chain

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