IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i12p4423-d841402.html
   My bibliography  Save this article

A Scientometric Analysis and Review of the Emissions Trading System

Author

Listed:
  • Yu-Jie Hu

    (School of Management, Guizhou University, Guiyang 550025, China
    State Key Laboratory of Public Big Data, Guizhou University, Guiyang 550025, China)

  • Lishan Yang

    (School of Management, Guizhou University, Guiyang 550025, China)

  • Fali Duan

    (State Key Laboratory of Public Big Data, Guizhou University, Guiyang 550025, China)

  • Honglei Wang

    (School of Management, Guizhou University, Guiyang 550025, China
    Key Laboratory of “Internet+” Collaborative Intelligent Manufacturing in Guizhou Provence, Guiyang 550025, China)

  • Chengjiang Li

    (School of Management, Guizhou University, Guiyang 550025, China
    School of Engineering, University of Tasmania, Hobart, TAS 7005, Australia)

Abstract

As a vital market mechanism to mitigate global warming, the emissions trading system (ETS) has critical research and practice value. According to articles from Web of Science’s core collection, quantitative statistics are used to analyze the ETS, including statistics on the number of articles, distributions of time and geography, journals and subjects, productive authors and institutions, academic collation, article citations, and hot topics. Moreover, this paper presents a qualitative analysis of research on the ETS, exploring hot issues, including its origin, allowance allocation, the impact of allowance allocation, and the ETS in the power sector. The results show that it is necessary to launch ETS to mitigate climate change effectively and reduce emissions at a low cost. Allowance allocation as its critical component has also caused heated discussion among scholars. In allowance allocation, exploring a desire to assign the future allowable carbon emissions reasonably and efficiently is vital, yet scholars widely do not accept this. Moreover, free allocation can only be applied to the transitional stage, and auctioning will be inevitable. In addition, scholars have studied the impact of different allowance allocation schemes from macro and micro perspectives and take the power sector, namely the largest emitter, as an example, by linear programming, equilibrium modeling, and multi-agent modeling. However, the quota allocation scheme needs improvement due to firms’ accuracy of emission data. Finally, governments are encouraged to launch the ETS to reduce emissions and combat climate change. The ETS should be improved gradually, including aspects such as cap setting, covering sectors, and the allocation method. Additionally, some key emission sectors and regions can be taken as the research and practice objects in the initial stage of the ETS.

Suggested Citation

  • Yu-Jie Hu & Lishan Yang & Fali Duan & Honglei Wang & Chengjiang Li, 2022. "A Scientometric Analysis and Review of the Emissions Trading System," Energies, MDPI, vol. 15(12), pages 1-20, June.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:12:p:4423-:d:841402
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/12/4423/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/12/4423/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kiriyama, Eriko & Kajikawa, Yuya & Fujita, Katsuhide & Iwata, Shuichi, 2013. "A lead for transvaluation of global nuclear energy research and funded projects in Japan," Applied Energy, Elsevier, vol. 109(C), pages 145-153.
    2. Karsten Neuhoff & Kim Keats Martinez & Misato Sato, 2006. "Allocation, incentives and distortions: the impact of EU ETS emissions allowance allocations to the electricity sector," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 73-91, January.
    3. Cramton, Peter & Kerr, Suzi, 2002. "Tradeable carbon permit auctions: How and why to auction not grandfather," Energy Policy, Elsevier, vol. 30(4), pages 333-345, March.
    4. Tang, Ling & Wang, Haohan & Li, Ling & Yang, Kaitong & Mi, Zhifu, 2020. "Quantitative models in emission trading system research: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    5. Martin L. Weitzman, 1974. "Prices vs. Quantities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(4), pages 477-491.
    6. Wei, Yi-Ming & Mi, Zhi-Fu & Huang, Zhimin, 2015. "Climate policy modeling: An online SCI-E and SSCI based literature review," Omega, Elsevier, vol. 57(PA), pages 70-84.
    7. Yihsu Chen & Jos Sijm & Benjamin Hobbs & Wietze Lise, 2008. "Implications of CO 2 emissions trading for short-run electricity market outcomes in northwest Europe," Journal of Regulatory Economics, Springer, vol. 34(3), pages 251-281, December.
    8. Wietze Lise & Jos Sijm & Benjamin Hobbs, 2010. "The Impact of the EU ETS on Prices, Profits and Emissions in the Power Sector: Simulation Results with the COMPETES EU20 Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 23-44, September.
    9. Goulder, Lawrence H. & Long, Xianling & Lu, Jieyi & Morgenstern, Richard D., 2022. "China's unconventional nationwide CO2 emissions trading system: Cost-effectiveness and distributional impacts," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    10. Jin, Yana & Liu, Xiaorui & Chen, Xiang & Dai, Hancheng, 2020. "Allowance allocation matters in China's carbon emissions trading system," Energy Economics, Elsevier, vol. 92(C).
    11. Jos Sijm & Karsten Neuhoff & Yihsu Chen, 2006. "CO 2 cost pass-through and windfall profits in the power sector," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 49-72, January.
    12. Hoel, Michael & Karp, Larry, 2001. "Taxes and quotas for a stock pollutant with multiplicative uncertainty," Journal of Public Economics, Elsevier, vol. 82(1), pages 91-114, October.
    13. Ahn, Jaekyun, 2014. "Assessment of initial emission allowance allocation methods in the Korean electricity market," Energy Economics, Elsevier, vol. 43(C), pages 244-255.
    14. Karsten Neuhoff & Markus Åhman & Regina Betz & Johanna Cludius & Federico Ferrario & Kristina Holmgren & Gabriella Pal & Michael Grubb & Felix Matthes & Karoline Rogge & Misato Sato & Joachim Schleich, 2006. "Implications of announced phase II national allocation plans for the EU ETS," Climate Policy, Taylor & Francis Journals, vol. 6(4), pages 411-422, July.
    15. Brian C. Murray & Richard G. Newell & William A. Pizer, 2009. "Balancing Cost and Emissions Certainty: An Allowance Reserve for Cap-and-Trade," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 3(1), pages 84-103, Winter.
    16. Damien Demailly & Philippe Quirion, 2006. "CO 2 abatement, competitiveness and leakage in the European cement industry under the EU ETS: grandfathering versus output-based allocation," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 93-113, January.
    17. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    18. Liu, Liwei & Sun, Xiaoru & Chen, Chuxiang & Zhao, Erdong, 2016. "How will auctioning impact on the carbon emission abatement cost of electric power generation sector in China?," Applied Energy, Elsevier, vol. 168(C), pages 594-609.
    19. Tang, Bao-Jun & Wang, Xiang-Yu & Wei, Yi-Ming, 2019. "Quantities versus prices for best social welfare in carbon reduction: A literature review," Applied Energy, Elsevier, vol. 233, pages 554-564.
    20. Newell, Richard G. & Pizer, William A., 2003. "Regulating stock externalities under uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 416-432, March.
    21. Damien Demailly & Philippe Quirion, 2006. "CO 2 abatement, competitiveness and leakage in the European cement industry under the EU ETS: grandfathering versus output-based allocation," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 93-113, January.
    22. Jouvet, Pierre-André & Solier, Boris, 2013. "An overview of CO2 cost pass-through to electricity prices in Europe," Energy Policy, Elsevier, vol. 61(C), pages 1370-1376.
    23. Wang, Ke & Zhang, Xian & Wei, Yi-Ming & Yu, Shiwei, 2013. "Regional allocation of CO2 emissions allowance over provinces in China by 2020," Energy Policy, Elsevier, vol. 54(C), pages 214-229.
    24. Cong, Rong-Gang & Wei, Yi-Ming, 2010. "Potential impact of (CET) carbon emissions trading on China’s power sector: A perspective from different allowance allocation options," Energy, Elsevier, vol. 35(9), pages 3921-3931.
    25. Cameron Hepburn & Michael Grubb & Karsten Neuhoff & Felix Matthes & Maximilien Tse, 2006. "Auctioning of EU ETS phase II allowances: how and why?," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 137-160, January.
    26. Zhang, Lirong & Li, Yakun & Jia, Zhijie, 2018. "Impact of carbon allowance allocation on power industry in China’s carbon trading market: Computable general equilibrium based analysis," Applied Energy, Elsevier, vol. 229(C), pages 814-827.
    27. Neuhoff, K. & Grubb, M. & Keats, K., 2005. "Impact of the allowance allocation on prices and efficiency," Cambridge Working Papers in Economics 0552, Faculty of Economics, University of Cambridge.
    28. Li, Wei & Jia, Zhijie, 2016. "The impact of emission trading scheme and the ratio of free quota: A dynamic recursive CGE model in China," Applied Energy, Elsevier, vol. 174(C), pages 1-14.
    29. Hoel, Michael & Karp, Larry, 2002. "Taxes versus quotas for a stock pollutant," Resource and Energy Economics, Elsevier, vol. 24(4), pages 367-384, November.
    30. Cameron Hepburn, 2006. "Regulation by Prices, Quantities, or Both: A Review of Instrument Choice," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(2), pages 226-247, Summer.
    31. Dong, Zhaoyingzi & Xia, Chuyu & Fang, Kai & Zhang, Weiwen, 2022. "Effect of the carbon emissions trading policy on the co-benefits of carbon emissions reduction and air pollution control," Energy Policy, Elsevier, vol. 165(C).
    32. Zhang, Wei & Li, Guoxiang & Guo, Fanyong, 2022. "Does carbon emissions trading promote green technology innovation in China?," Applied Energy, Elsevier, vol. 315(C).
    33. Woerdman, Edwin, 2000. "Implementing the Kyoto protocol: why JI and CDM show more promise than international emissions trading," Energy Policy, Elsevier, vol. 28(1), pages 29-38, January.
    34. Allen Blackman & Zhengyan Li & Antung A. Liu, 2018. "Efficacy of Command-and-Control and Market-Based Environmental Regulation in Developing Countries," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 381-404, October.
    35. Burtraw, Dallas & Palmer, Karen & Bharvirkar, Ranjit & Paul, Anthony, 2002. "The Effect on Asset Values of the Allocation of Carbon Dioxide Emission Allowances," The Electricity Journal, Elsevier, vol. 15(5), pages 51-62, June.
    36. Stavins, Robert N., 1997. "Policy Instruments for Climate Change: How Can National Governments Address a Global Problem?," Discussion Papers 10757, Resources for the Future.
    37. repec:dau:papers:123456789/7761 is not listed on IDEAS
    38. Jia, Zhijie & Lin, Boqiang, 2020. "Rethinking the choice of carbon tax and carbon trading in China," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    39. Böhringer, Christoph & Lange, Andreas, 2003. "Economic Implications of Alternative Allocation Schemes for Emission Allowances: A Theoretical and Applied Analysis," ZEW Discussion Papers 03-22, ZEW - Leibniz Centre for European Economic Research.
    40. Larry Karp & Jiangfeng Zhang, 2005. "Regulation of Stock Externalities with Correlated Abatement Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(2), pages 273-300, October.
    41. Ringius, Lasse & Torvanger, Asbjorn & Holtsmark, Bjart, 1998. "Can multi-criteria rules fairly distribute climate burdens?: OECD results from three burden sharing rules," Energy Policy, Elsevier, vol. 26(10), pages 777-793, August.
    42. Chang-Jing Ji & Xiao-Yi Li & Yu-Jie Hu & Xiang-Yu Wang & Bao-Jun Tang, 2019. "Research on carbon price in emissions trading scheme: a bibliometric analysis," 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. 99(3), pages 1381-1396, December.
    43. Yu, Hao & Wei, Yi-Ming & Tang, Bao-Jun & Mi, Zhifu & Pan, Su-Yan, 2016. "Assessment on the research trend of low-carbon energy technology investment: A bibliometric analysis," Applied Energy, Elsevier, vol. 184(C), pages 960-970.
    44. Regina Betz & Karoline Rogge & Joachim Schleich, 2006. "EU emissions trading: an early analysis of national allocation plans for 2008-2012," Climate Policy, Taylor & Francis Journals, vol. 6(4), pages 361-394, July.
    45. Regina Betz & Wolfgang Eichhammer & Joachim Schleich, 2004. "Designing National Allocation Plans for Eu-Emissions Trading — A First Analysis of the Outcomes," Energy & Environment, , vol. 15(3), pages 375-425, July.
    46. Damien Demailly & Philippe Quirion, 2006. "CO2 abatement, competitiveness and leakage in the European cement industry under the EU ETS: Grandfathering vs. output-based allocation," Post-Print halshs-00639327, HAL.
    47. Xiang-Yu Wang & Bao-Jun Tang, 2018. "Review of comparative studies on market mechanisms for carbon emission reduction: a bibliometric analysis," 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. 94(3), pages 1141-1162, December.
    48. Lin, Boqiang & Jia, Zhijie, 2018. "Impact of quota decline scheme of emission trading in China: A dynamic recursive CGE model," Energy, Elsevier, vol. 149(C), pages 190-203.
    49. Adam Rose & Brandt Stevens & Jae Edmonds & Marshall Wise, 1998. "International Equity and Differentiation in Global Warming Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(1), pages 25-51, July.
    50. Harstad, Bård & Lancia, Francesco & Russo, Alessia, 2022. "Prices vs. quantities for self-enforcing agreements," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    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. Hong Shi & Mengmeng Cheng & Yi Feng & Chenghui Qiu & Caiyue Song & Nenglin Yuan & Chuanzhi Kang & Kaijie Yang & Jie Yuan & Yonghao Li, 2023. "Thermal Management Techniques for Lithium-Ion Batteries Based on Phase Change Materials: A Systematic Review and Prospective Recommendations," Energies, MDPI, vol. 16(2), pages 1-23, January.
    2. Dan Wang & Juheng Yang, 2022. "Carbon Neutrality Strategies for Chinese International Oil Company Based on the Rapid Development of Global Carbon Market," Sustainability, MDPI, vol. 14(18), pages 1-16, September.
    3. Nathalia Wolf & Pablo Escalona & Mónica López-Campos & Alejandro Angulo & Jorge Weston, 2023. "On Carbon Tax Effectiveness in Inducing a Clean Technology Transition: An Evaluation Based on Optimal Strategic Capacity Planning," Sustainability, MDPI, vol. 15(15), pages 1-23, July.

    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. Christoph Weber & Philip Vogel, 2014. "Contingent certificate allocation rules and incentives for power plant investment and disinvestment," Journal of Regulatory Economics, Springer, vol. 46(3), pages 292-317, December.
    2. Wang, M. & Zhou, P., 2017. "Does emission permit allocation affect CO2 cost pass-through? A theoretical analysis," Energy Economics, Elsevier, vol. 66(C), pages 140-146.
    3. Zhou, P. & Wang, M., 2016. "Carbon dioxide emissions allocation: A review," Ecological Economics, Elsevier, vol. 125(C), pages 47-59.
    4. Yu-Jie Hu & Rong Han & Bao-Jun Tang, 2017. "Research on the initial allocation of carbon emission quotas: evidence from China," 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. 85(2), pages 1189-1208, January.
    5. Jinye Zhao & Benjamin F. Hobbs & Jong-Shi Pang, 2010. "Long-Run Equilibrium Modeling of Emissions Allowance Allocation Systems in Electric Power Markets," Operations Research, INFORMS, vol. 58(3), pages 529-548, June.
    6. Zhifu Mi & Hua Liao & D’Maris Coffman & Yi-Ming Wei, 2019. "Assessment of equity principles for international climate policy based on an integrated assessment model," 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. 95(1), pages 309-323, January.
    7. Philippe Quirion & Damien Demailly, 2008. "Changing the Allocation Rules in the EU ETS: Impact on Competitiveness and Economic Efficiency," Working Papers 2008.89, Fondazione Eni Enrico Mattei.
    8. Joseph E. Aldy & Alan J. Krupnick & Richard G. Newell & Ian W. H. Parry & William A. Pizer, 2010. "Designing Climate Mitigation Policy," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 903-934, December.
    9. Botor, Benjamin & Böcker, Benjamin & Kallabis, Thomas & Weber, Christoph, 2021. "Information shocks and profitability risks for power plant investments – impacts of policy instruments," Energy Economics, Elsevier, vol. 102(C).
    10. Pezzey, John C.V. & Jotzo, Frank, 2010. "Tax-Versus-Trading and Free Emission Shares as Issues for Climate Policy Design," Research Reports 95049, Australian National University, Environmental Economics Research Hub.
    11. Vera Zipperer & Misato Sato & Karsten Neuhoff, 2017. "Benchmarks for Emissions Trading – General Principles for Emissions Scope," Discussion Papers of DIW Berlin 1712, DIW Berlin, German Institute for Economic Research.
    12. Rohling, Moritz & Ohndorf, Markus, 2012. "Prices vs. Quantities with fiscal cushioning," Resource and Energy Economics, Elsevier, vol. 34(2), pages 169-187.
    13. Ian A. MacKenzie, 2017. "Rent creation and rent seeking in environmental policy," Public Choice, Springer, vol. 171(1), pages 145-166, April.
    14. Ollikka, Kimmo, 2014. "Essays on auction mechanisms and information in regulating pollution," Research Reports 66, VATT Institute for Economic Research.
    15. Philippe Quirion, 2022. "Output-based allocation and output-based rebates: a survey," Chapters, in: Handbook on Trade Policy and Climate Change, chapter 7, pages 94-107, Edward Elgar Publishing.
    16. Angela Köppl & Gregor Thenius & Stefan Schleicher, 2008. "Impacts of the EU Emissions Trading Scheme: Insights from the First Trading Period with a Focus on Competitiveness Issues," WIFO Studies, WIFO, number 33963, April.
    17. Ollikka, Kimmo, 2014. "Essays on auction mechanisms and information in regulating pollution," Research Reports P66, VATT Institute for Economic Research.
    18. Misato Sato & Karsten Neuhoff & Verena Graichen & Katja Schumacher & Felix Matthes, 2013. "Sectors under scrutiny � Evaluation of indicators to assess the risk of carbon leakage in the UK and Germany," GRI Working Papers 113, Grantham Research Institute on Climate Change and the Environment.
    19. Frédéric Branger & Misato Sato, 2017. "Solving the clinker dilemma with hybrid output-based allocation," Climatic Change, Springer, vol. 140(3), pages 483-501, February.
    20. Tang, Bao-Jun & Wang, Xiang-Yu & Wei, Yi-Ming, 2019. "Quantities versus prices for best social welfare in carbon reduction: A literature review," Applied Energy, Elsevier, vol. 233, pages 554-564.

    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:gam:jeners:v:15:y:2022:i:12:p:4423-:d:841402. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.