IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2017-02-23.html
   My bibliography  Save this article

Low Carbon Technology Innovation, Carbon Emissions Trading and Relevant Policy Support for China s Low Carbon Economy Development

Author

Listed:
  • Xiangsheng Dou

    (School of Economics and Management, Southwest Jiaotong University, People s Republic China.)

Abstract

The key to solving increasingly serious environmental problems is comprehensively to promote low carbon economy (LCE) development, while LCE development needs the conditions of particular system and capacity. This paper builds a cone model to focus on the analysis of these basic factors of low carbon technology innovation, carbon emissions right trading, carbon finance and low carbon policy to provide a theoretical basis for China s LCE practice. The results indicate that low carbon technology innovation is the basis for the LCE development, while carbon emissions right trading is the key to the LCE development. At the same time, the LCE development needs the corresponding conditions such as carbon finance and low carbon policies. Therefore, China should currently focus on these problems to promote the rapid development of LCE.

Suggested Citation

  • Xiangsheng Dou, 2017. "Low Carbon Technology Innovation, Carbon Emissions Trading and Relevant Policy Support for China s Low Carbon Economy Development," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 172-184.
  • Handle: RePEc:eco:journ2:2017-02-23
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/4279/2751
    Download Restriction: no

    File URL: http://www.econjournals.com/index.php/ijeep/article/view/4279/2751
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hendry, Chris & Harborne, Paul & Brown, James, 2010. "So what do innovating companies really get from publicly funded demonstration projects and trials? innovation lessons from solar photovoltaics and wind," Energy Policy, Elsevier, vol. 38(8), pages 4507-4519, August.
    2. Weber, Thomas A. & Neuhoff, Karsten, 2010. "Carbon markets and technological innovation," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 115-132, September.
    3. Egenhofer, Christian, 2007. "The Making of the EU Emissions Trading Scheme:: Status, Prospects and Implications for Business," European Management Journal, Elsevier, vol. 25(6), pages 453-463, December.
    4. Foxon, T. J. & Gross, R. & Chase, A. & Howes, J. & Arnall, A. & Anderson, D., 2005. "UK innovation systems for new and renewable energy technologies: drivers, barriers and systems failures," Energy Policy, Elsevier, vol. 33(16), pages 2123-2137, November.
    5. Fischer, Carolyn & Kerr, Suzi & Toman, Michael, 1998. "Using Emissions Trading to Regulate U.S. Greenhouse Gas Emissions: An Overview of Policy Design and Implementation Issues," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(3), pages 453-464, September.
    6. Campiglio, Emanuele, 2016. "Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy," Ecological Economics, Elsevier, vol. 121(C), pages 220-230.
    7. Clot, Sophie & Andriamahefazafy, Fano & Grolleau, Gilles & Ibanez, Lisette & Méral, Philippe, 2015. "Compensation and Rewards for Environmental Services (CRES) and efficient design of contracts in developing countries. Behavioral insights from a natural field experiment," Ecological Economics, Elsevier, vol. 113(C), pages 85-96.
    8. Bürer, Mary Jean & Wüstenhagen, Rolf, 2009. "Which renewable energy policy is a venture capitalist's best friend? Empirical evidence from a survey of international cleantech investors," Energy Policy, Elsevier, vol. 37(12), pages 4997-5006, December.
    9. Sovacool, Benjamin K. & Dworkin, Michael H., 2015. "Energy justice: Conceptual insights and practical applications," Applied Energy, Elsevier, vol. 142(C), pages 435-444.
    10. Kannan, R., 2009. "Uncertainties in key low carbon power generation technologies - Implication for UK decarbonisation targets," Applied Energy, Elsevier, vol. 86(10), pages 1873-1886, October.
    11. Wang, Peng & Dai, Han-cheng & Ren, Song-yan & Zhao, Dai-qing & Masui, Toshihiko, 2015. "Achieving Copenhagen target through carbon emission trading: Economic impacts assessment in Guangdong Province of China," Energy, Elsevier, vol. 79(C), pages 212-227.
    12. Sovacool, Benjamin K., 2011. "The policy challenges of tradable credits: A critical review of eight markets," Energy Policy, Elsevier, vol. 39(2), pages 575-585, February.
    13. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    14. Winskel, Mark & Radcliffe, Jonathan & Skea, Jim & Wang, Xinxin, 2014. "Remaking the UK's energy technology innovation system: From the margins to the mainstream," Energy Policy, Elsevier, vol. 68(C), pages 591-602.
    15. Zhang, Xian & Fan, Jing-Li & Wei, Yi-Ming, 2013. "Technology roadmap study on carbon capture, utilization and storage in China," Energy Policy, Elsevier, vol. 59(C), pages 536-550.
    16. Liang, Qiao-Mei & Wei, Yi-Ming, 2012. "Distributional impacts of taxing carbon in China: Results from the CEEPA model," Applied Energy, Elsevier, vol. 92(C), pages 545-551.
    17. Yu, Shiwei & Wei, Yi-Ming & Guo, Haixiang & Ding, Liping, 2014. "Carbon emission coefficient measurement of the coal-to-power energy chain in China," Applied Energy, Elsevier, vol. 114(C), pages 290-300.
    18. Wiser, R. H., 2000. "The role of public policy in emerging green power markets: an analysis of marketer preferences," Renewable and Sustainable Energy Reviews, Elsevier, vol. 4(2), pages 177-212, June.
    19. Zhang, Da & Karplus, Valerie J. & Cassisa, Cyril & Zhang, Xiliang, 2014. "Emissions trading in China: Progress and prospects," Energy Policy, Elsevier, vol. 75(C), pages 9-16.
    20. Liu, Xuemei, 2008. "The monetary compensation mechanism: An alternative to the clean development mechanism," Ecological Economics, Elsevier, vol. 66(2-3), pages 289-297, June.
    21. Kennedy, Matthew & Basu, Biswajit, 2013. "Overcoming barriers to low carbon technology transfer and deployment: An exploration of the impact of projects in developing and emerging economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 685-693.
    22. Leung, Dennis Y.C. & Caramanna, Giorgio & Maroto-Valer, M. Mercedes, 2014. "An overview of current status of carbon dioxide capture and storage technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 426-443.
    23. Xiangsheng Dou, 2015. "The essence, feature and role of low carbon economy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(1), pages 123-136, February.
    24. Eichner, Thomas & Pethig, Rüdiger, 2014. "International carbon emissions trading and strategic incentives to subsidize green energy," Resource and Energy Economics, Elsevier, vol. 36(2), pages 469-486.
    25. Bambawale, Malavika Jain & Sovacool, Benjamin K., 2011. "China's energy security: The perspective of energy users," Applied Energy, Elsevier, vol. 88(5), pages 1949-1956, May.
    26. Mathews, John A., 2008. "How carbon credits could drive the emergence of renewable energies," Energy Policy, Elsevier, vol. 36(10), pages 3633-3639, October.
    27. Lewis, Joanna I., 2010. "The evolving role of carbon finance in promoting renewable energy development in China," Energy Policy, Elsevier, vol. 38(6), pages 2875-2886, June.
    28. Liu, Hengwei & Liang, Xi, 2011. "Strategy for promoting low-carbon technology transfer to developing countries: The case of CCS," Energy Policy, Elsevier, vol. 39(6), pages 3106-3116, June.
    29. Zhang, Sufang & Andrews-Speed, Philip & Zhao, Xiaoli & He, Yongxiu, 2013. "Interactions between renewable energy policy and renewable energy industrial policy: A critical analysis of China's policy approach to renewable energies," Energy Policy, Elsevier, vol. 62(C), pages 342-353.
    30. Winskel, Mark & Markusson, Nils & Jeffrey, Henry & Candelise, Chiara & Dutton, Geoff & Howarth, Paul & Jablonski, Sophie & Kalyvas, Christos & Ward, David, 2014. "Learning pathways for energy supply technologies: Bridging between innovation studies and learning rates," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 96-114.
    31. Hong, Sanghyun & Bradshaw, Corey J.A. & Brook, Barry W., 2015. "Global zero-carbon energy pathways using viable mixes of nuclear and renewables," Applied Energy, Elsevier, vol. 143(C), pages 451-459.
    32. Liu, Hengwei & Liang, Dapeng, 2013. "A review of clean energy innovation and technology transfer in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 486-498.
    33. Baker, Erin & Bosetti, Valentina & Anadon, Laura Diaz & Henrion, Max & Aleluia Reis, Lara, 2015. "Future costs of key low-carbon energy technologies: Harmonization and aggregation of energy technology expert elicitation data," Energy Policy, Elsevier, vol. 80(C), pages 219-232.
    34. Chau, C.K. & Leung, T.M. & Ng, W.Y., 2015. "A review on Life Cycle Assessment, Life Cycle Energy Assessment and Life Cycle Carbon Emissions Assessment on buildings," Applied Energy, Elsevier, vol. 143(C), pages 395-413.
    35. Zhu, Zhi-Shuang & Liao, Hua & Cao, Huai-Shu & Wang, Lu & Wei, Yi-Ming & Yan, Jinyue, 2014. "The differences of carbon intensity reduction rate across 89 countries in recent three decades," Applied Energy, Elsevier, vol. 113(C), pages 808-815.
    36. Stua, Michele, 2013. "Evidence of the clean development mechanism impact on the Chinese electric power system's low-carbon transition," Energy Policy, Elsevier, vol. 62(C), pages 1309-1319.
    37. Roach, Travis, 2013. "A dynamic state-level analysis of carbon dioxide emissions in the United States," Energy Policy, Elsevier, vol. 59(C), pages 931-937.
    38. Lai, Xianjin & Ye, Zhonghua & Xu, Zhengzhong & Husar Holmes, Maja & Henry Lambright, W., 2012. "Carbon capture and sequestration (CCS) technological innovation system in China: Structure, function evaluation and policy implication," Energy Policy, Elsevier, vol. 50(C), pages 635-646.
    39. Wiesenthal, Tobias & Leduc, Guillaume & Haegeman, Karel & Schwarz, Hans-Günther, 2012. "Bottom-up estimation of industrial and public R&D investment by technology in support of policy-making: The case of selected low-carbon energy technologies," Research Policy, Elsevier, vol. 41(1), pages 116-131.
    40. Shi, Qian & Lai, Xiaodong, 2013. "Identifying the underpin of green and low carbon technology innovation research: A literature review from 1994 to 2010," Technological Forecasting and Social Change, Elsevier, vol. 80(5), pages 839-864.
    41. Zafirakis, Dimitrios & Chalvatzis, Konstantinos J. & Baiocchi, Giovanni & Daskalakis, George, 2013. "Modeling of financial incentives for investments in energy storage systems that promote the large-scale integration of wind energy," Applied Energy, Elsevier, vol. 105(C), pages 138-154.
    42. Muench, Stefan & Thuss, Sebastian & Guenther, Edeltraud, 2014. "What hampers energy system transformations? The case of smart grids," Energy Policy, Elsevier, vol. 73(C), pages 80-92.
    43. Comello, Stephen & Reichelstein, Stefan, 2014. "Incentives for early adoption of carbon capture technology," Energy Policy, Elsevier, vol. 74(C), pages 579-588.
    44. Cui, Lian-Biao & Fan, Ying & Zhu, Lei & Bi, Qing-Hua, 2014. "How will the emissions trading scheme save cost for achieving China’s 2020 carbon intensity reduction target?," Applied Energy, Elsevier, vol. 136(C), pages 1043-1052.
    45. Hou, Jian & Zhang, Peidong & Tian, Yongsheng & Yuan, Xianzheng & Yang, Yanli, 2011. "Developing low-carbon economy: Actions, challenges and solutions for energy savings in China," Renewable Energy, Elsevier, vol. 36(11), pages 3037-3042.
    46. Chang, Yuan & Huang, Runze & Ries, Robert J. & Masanet, Eric, 2014. "Shale-to-well energy use and air pollutant emissions of shale gas production in China," Applied Energy, Elsevier, vol. 125(C), pages 147-157.
    47. Narayan, Paresh Kumar & Sharma, Susan Sunila, 2015. "Is carbon emissions trading profitable?," Economic Modelling, Elsevier, vol. 47(C), pages 84-92.
    48. Feng, Chenpeng & Chu, Feng & Ding, Jingjing & Bi, Gongbing & Liang, Liang, 2015. "Carbon Emissions Abatement (CEA) allocation and compensation schemes based on DEA," Omega, Elsevier, vol. 53(C), pages 78-89.
    49. Howard, Rebecca Joy & Tallontire, Anne & Stringer, Lindsay & Marchant, Rob, 2015. "Unraveling the Notion of “Fair Carbon”: Key Challenges for Standards Development," World Development, Elsevier, vol. 70(C), pages 343-356.
    50. Castillo, Anya & Linn, Joshua, 2011. "Incentives of carbon dioxide regulation for investment in low-carbon electricity technologies in Texas," Energy Policy, Elsevier, vol. 39(3), pages 1831-1844, March.
    51. Costantini, Valeria & Crespi, Francesco & Martini, Chiara & Pennacchio, Luca, 2015. "Demand-pull and technology-push public support for eco-innovation: The case of the biofuels sector," Research Policy, Elsevier, vol. 44(3), pages 577-595.
    52. Olmos, Luis & Ruester, Sophia & Liong, Siok-Jen, 2012. "On the selection of financing instruments to push the development of new technologies: Application to clean energy technologies," Energy Policy, Elsevier, vol. 43(C), pages 252-266.
    53. Zhi, Qiang & Sun, Honghang & Li, Yanxi & Xu, Yurui & Su, Jun, 2014. "China’s solar photovoltaic policy: An analysis based on policy instruments," Applied Energy, Elsevier, vol. 129(C), pages 308-319.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:thr:techub:10015:y:2021:i:1:p:19-23 is not listed on IDEAS
    2. Linghong Zhang & Hao Zhou & Yanyan Liu & Rui Lu, 2018. "The Optimal Carbon Emission Reduction and Prices with Cap and Trade Mechanism and Competition," IJERPH, MDPI, vol. 15(11), pages 1-23, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Ke & Wei, Yi-Ming & Huang, Zhimin, 2016. "Potential gains from carbon emissions trading in China: A DEA based estimation on abatement cost savings," Omega, Elsevier, vol. 63(C), pages 48-59.
    2. Wang, Juan & Hu, Mingming & Tukker, Arnold & Rodrigues, João F.D., 2019. "The impact of regional convergence in energy-intensive industries on China's CO2 emissions and emission goals," Energy Economics, Elsevier, vol. 80(C), pages 512-523.
    3. Polzin, Friedemann, 2017. "Mobilizing private finance for low-carbon innovation – A systematic review of barriers and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 525-535.
    4. Liu, Yu & Tan, Xiu-Jie & Yu, Yang & Qi, Shao-Zhou, 2017. "Assessment of impacts of Hubei Pilot emission trading schemes in China – A CGE-analysis using TermCO2 model," Applied Energy, Elsevier, vol. 189(C), pages 762-769.
    5. Che, Xiao-Jing & Zhou, P. & Chai, Kah-Hin, 2022. "Regional policy effect on photovoltaic (PV) technology innovation: Findings from 260 cities in China," Energy Policy, Elsevier, vol. 162(C).
    6. Bossink, Bart A.G., 2017. "Demonstrating sustainable energy: A review based model of sustainable energy demonstration projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1349-1362.
    7. Jiang, Jingjing & Xie, Dejun & Ye, Bin & Shen, Bo & Chen, Zhanming, 2016. "Research on China’s cap-and-trade carbon emission trading scheme: Overview and outlook," Applied Energy, Elsevier, vol. 178(C), pages 902-917.
    8. Tang, Ling & Shi, Jiarui & Bao, Qin, 2016. "Designing an emissions trading scheme for China with a dynamic computable general equilibrium model," Energy Policy, Elsevier, vol. 97(C), pages 507-520.
    9. Mengfei Jiang & Xi Liang & David Reiner & Boqiang Lin & Maosheng Duan, 2018. "Stakeholder Views on Interactions between Low-carbon Policies and Carbon Markets in China: Lessons from the Guangdong ETS," Working Papers EPRG 1805, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    10. Kristoffer Palage & Robert Lundmark & Patrik Söderholm, 2019. "The innovation effects of renewable energy policies and their interaction: the case of solar photovoltaics," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 217-254, April.
    11. Huang, Hai & Roland-Holst, David & Springer, Cecilia & Lin, Jiang & Cai, Wenjia & Wang, Can, 2019. "Emissions trading systems and social equity: A CGE assessment for China," Applied Energy, Elsevier, vol. 235(C), pages 1254-1265.
    12. Bin Ye & Jingjing Jiang & Lixin Miao & Peng Yang & Ji Li & Bo Shen, 2015. "Feasibility Study of a Solar-Powered Electric Vehicle Charging Station Model," Energies, MDPI, vol. 8(11), pages 1-19, November.
    13. Wu, Rui & Dai, Hancheng & Geng, Yong & Xie, Yang & Masui, Toshihiko & Tian, Xu, 2016. "Achieving China’s INDC through carbon cap-and-trade: Insights from Shanghai," Applied Energy, Elsevier, vol. 184(C), pages 1114-1122.
    14. Yang, Lin & Li, Fengyu & Zhang, Xian, 2016. "Chinese companies’ awareness and perceptions of the Emissions Trading Scheme (ETS): Evidence from a national survey in China," Energy Policy, Elsevier, vol. 98(C), pages 254-265.
    15. Jie Wu & Jun-Fei Chu & Liang Liang, 2016. "Target setting and allocation of carbon emissions abatement based on DEA and closest target: an application to 20 APEC economies," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 279-296, November.
    16. Weng, Qingqing & Xu, He, 2018. "A review of China’s carbon trading market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 613-619.
    17. Wang, Lu & Wei, Yi-Ming & Brown, Marilyn A., 2017. "Global transition to low-carbon electricity: A bibliometric analysis," Applied Energy, Elsevier, vol. 205(C), pages 57-68.
    18. Yanni Yu & Weijie Zhang & Ning Zhang, 2018. "The Potential Gains from Carbon Emissions Trading in China’s Industrial Sectors," Computational Economics, Springer;Society for Computational Economics, vol. 52(4), pages 1175-1194, December.
    19. Gianluca ORSATTI, 2019. "Public R&D and green knowledge diffusion:\r\nEvidence from patent citation data," Cahiers du GREThA (2007-2019) 2019-17, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    20. Zhao, Tian & Liu, Zhixin, 2019. "A novel analysis of carbon capture and storage (CCS) technology adoption: An evolutionary game model between stakeholders," Energy, Elsevier, vol. 189(C).

    More about this item

    Keywords

    Low Carbon Economy; Low Carbon Technology Innovation; Carbon Emissions Right Trading; Carbon Finance; Low Carbon Economy Policies;
    All these keywords.

    JEL classification:

    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2017-02-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.