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Carbon allowance allocation in the transportation industry


  • Chih Chang, Ching
  • Chia Lai, Tin


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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    References listed on IDEAS

    1. Garvey, Seamus D., 2012. "The dynamics of integrated compressed air renewable energy systems," Renewable Energy, Elsevier, vol. 39(1), pages 271-292.
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    8. Brand, Christian & Tran, Martino & Anable, Jillian, 2012. "The UK transport carbon model: An integrated life cycle approach to explore low carbon futures," Energy Policy, Elsevier, vol. 41(C), pages 107-124.
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    Cited by:

    1. Xuankai Deng & Yanhua Yu & Yanfang Liu, 2015. "Temporal and Spatial Variations in Provincial CO 2 Emissions in China from 2005 to 2015 and Assessment of a Reduction Plan," Energies, MDPI, Open Access Journal, vol. 8(5), pages 1-23, May.
    2. repec:eee:enepol:v:106:y:2017:i:c:p:298-309 is not listed on IDEAS
    3. 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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