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Carbon allowance allocation in the transportation industry

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  • Chih Chang, Ching
  • Chia Lai, Tin

Abstract

This study proposes models for projecting reductions in CO2 emissions of 10%, 20%, 30%, and 40% compared to business as usual (BAU), using a carbon allowance allocation policy and both unimodal and intermodal modes of transportation. The results show that for 10% to 80% decreases in free carbon allowance, the intermodal ratio increased from 1.01% to 53.44%, which led to decreases in carbon emissions and demand ranging from 10.41% to 48.19% and 8.45% to 7.57%, respectively. When free carbon allowances are decreased, the demand for intermodal systems increases accordingly. These results suggest that a carbon allowance allocation policy could mitigate transportation carbon emissions with a relatively small negative impact on economic activity.

Suggested Citation

  • Chih Chang, Ching & Chia Lai, Tin, 2013. "Carbon allowance allocation in the transportation industry," Energy Policy, Elsevier, vol. 63(C), pages 1091-1097.
    • Handle: RePEc:eee:enepol:v:63:y:2013:i:c:p:1091-1097
    DOI: 10.1016/j.enpol.2013.08.093
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    Cited by:

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    4. Han, Rong & Yu, Bi-Ying & Tang, Bao-Jun & Liao, Hua & Wei, Yi-Ming, 2017. "Carbon emissions quotas in the Chinese road transport sector: A carbon trading perspective," Energy Policy, Elsevier, vol. 106(C), pages 298-309.
    5. Li, Xuelian & Chen, Lingzhi & Lin, Jyh-Horng, 2023. "Cap-and-trade mechanisms, green technology investment, and shadow insurance in a black swan environment," Energy Economics, Elsevier, vol. 124(C).
    6. Chang, Ching-Chih & Chung, Chia-Ling, 2018. "Greenhouse gas mitigation policies in Taiwan's road transportation sectors," Energy Policy, Elsevier, vol. 123(C), pages 299-307.
    7. Xu, Jiuping & Yang, Xin & Tao, Zhimiao, 2015. "A tripartite equilibrium for carbon emission allowance allocation in the power-supply industry," Energy Policy, Elsevier, vol. 82(C), pages 62-80.

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