IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i9p1624-d226836.html
   My bibliography  Save this article

Research on the Impact of Various Emission Reduction Policies on China’s Iron and Steel Industry Production and Economic Level under the Carbon Trading Mechanism

Author

Listed:
  • Ye Duan

    (College of Urban and Environmental, Liaoning Normal University, Dalian 116029, China)

  • Zenglin Han

    (Center for Studies of Marine Economy and Sustainable Development, Liaoning Normal University, Dalian 116029, China)

  • Hailin Mu

    (Key Laboratory of Ocean Energy Utilization and Energy Conservation of Ministry of Education, Dalian University of Technology, Dalian 116024, China)

  • Jun Yang

    (Human Settlements Research Center, Liaoning Normal University, Dalian 116029, China)

  • Yonghua Li

    (College of Urban and Environmental, Liaoning Normal University, Dalian 116029, China)

Abstract

To study the emission reduction policies’ impact on the production and economic level of the steel industry, this paper constructs a two-stage dynamic game model and analyzes various emission reduction policies’ impact on the steel industry and enterprises. New results are observed in the study: (1) With the increasing emission reduction target (15%–30%) and carbon quota trading price (12.65–137.59 Yuan), social welfare and producer surplus show an increasing trend and emission macro losses show a decreasing trend. (2) Enterprises’ reduction ranges in northwestern and southwestern regions are much higher than that of the other regions; the northeastern enterprise has the smallest reductions range. (3) When the market is balanced (0.8543–0.9320 billion tons), the steel output has decreased and the polarization in various regions has been alleviated to some extent. The model is the abstraction and assumption of reality, which makes the results have some deviations. However, these will provide references to formulate reasonable emissions reduction and production targets. In addition, the government needs to consider the whole and regional balance and carbon trading benchmark value when deciding the implementation of a single or mixed policy. Future research will be more closely linked to national policies and gradually extended to other high-energy industries.

Suggested Citation

  • Ye Duan & Zenglin Han & Hailin Mu & Jun Yang & Yonghua Li, 2019. "Research on the Impact of Various Emission Reduction Policies on China’s Iron and Steel Industry Production and Economic Level under the Carbon Trading Mechanism," Energies, MDPI, vol. 12(9), pages 1-26, April.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:9:p:1624-:d:226836
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/9/1624/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/9/1624/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alberola, Emilie & Chevallier, Julien & Chèze, Benoît, 2009. "Emissions Compliances and Carbon Prices under the EU ETS: A Country Specific Analysis of Industrial Sectors," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 446-462, May.
    2. Jie Wu & Ying Fan & Yan Xia, 2017. "How Can China Achieve Its Nationally Determined Contribution Targets Combining Emissions Trading Scheme and Renewable Energy Policies?," Energies, MDPI, vol. 10(8), pages 1-20, August.
    3. Timothy Considine & Donald F. Larson, 2012. "Short Term Electric Production Technology Switching Under Carbon Cap and Trade," Energies, MDPI, vol. 5(10), pages 1-21, October.
    4. Jamasb, T. & Köhler, J., 2007. "Learning Curves For Energy Technology and Policy Analysis: A Critical Assessment," Cambridge Working Papers in Economics 0752, Faculty of Economics, University of Cambridge.
    5. Mustafa Babiker, John Reilly and Laurent Viguier, 2004. "Is International Emissions Trading Always Beneficial?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 33-56.
    6. Anger, Annela, 2010. "Including aviation in the European emissions trading scheme: Impacts on the industry, CO2 emissions and macroeconomic activity in the EU," Journal of Air Transport Management, Elsevier, vol. 16(2), pages 100-105.
    7. Emilie Alberola & Julien Chevallier & Benoît Chèze, 2009. "Emissions Compliances and Carbon Prices under the EU ETS: A Country Specific Analysis of Industrial SectorsEmissions Compliances and Carbon Price," Post-Print hal-00649925, HAL.
    8. Ye Duan & Nan Li & Hailin Mu & Shusen Gui, 2017. "Research on CO 2 Emission Reduction Mechanism of China’s Iron and Steel Industry under Various Emission Reduction Policies," Energies, MDPI, vol. 10(12), pages 1-24, December.
    9. Jacob K. Goeree & Charles A. Holt & Karen Palmer & William Shobe & Dallas Burtraw, 2010. "An Experimental Study of Auctions Versus Grandfathering to Assign Pollution Permits," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 514-525, 04-05.
    10. 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.
    11. 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.
    12. Färe, Rolf & Grosskopf, Shawna & Pasurka, Carl A., 2007. "Environmental production functions and environmental directional distance functions," Energy, Elsevier, vol. 32(7), pages 1055-1066.
    13. Dai, Hancheng & Xie, Yang & Liu, Jingyu & Masui, Toshihiko, 2018. "Aligning renewable energy targets with carbon emissions trading to achieve China's INDCs: A general equilibrium assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4121-4131.
    14. Yolanda Fernández Fernández & María Angeles Fernández López & David González Hernández & Blanca Olmedillas Blanco, 2018. "Institutional Change and Environment: Lessons from the European Emission Trading System," Energies, MDPI, vol. 11(4), pages 1-16, March.
    15. Markus Ahman & Lars Zetterberg, 2007. "Options for emission allowance allocation under the Eu Emissions Trading Directive," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(8), pages 1433-1433, October.
    16. Veronika Grimm & Lyuba Ilieva, 2013. "An experiment on emissions trading: the effect of different allocation mechanisms," Journal of Regulatory Economics, Springer, vol. 44(3), pages 308-338, December.
    17. Ellerman, A. Denny & Jacoby, Henry D. & Decaux, Annelene, 1998. "The effects on developing countries of the Kyoto Protocol and carbon dioxide emissions trading," Policy Research Working Paper Series 2019, The World Bank.
    18. Yinpeng Liu & Xiangyun Gao & Jianfeng Guo, 2018. "Network Features of the EU Carbon Trade System: An Evolutionary Perspective," Energies, MDPI, vol. 11(6), pages 1-16, June.
    19. repec:dau:papers:123456789/4224 is not listed on IDEAS
    20. Jaeseok Lee & Jongmin Yu, 2017. "Market Analysis during the First Year of Korea Emission Trading Scheme," Energies, MDPI, vol. 10(12), pages 1-13, November.
    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. Hongpeng Guo & Zhihao Lv & Junyi Hua & Hongxu Yuan & Qingyu Yu, 2021. "Design of Combined Auction Model for Emission Rights of International Forestry Carbon Sequestration and Other Pollutants Based on SMRA," Sustainability, MDPI, vol. 13(20), pages 1-18, October.
    2. Di Li & Qianbin Di & Hailin Mu & Zenglin Han & Hongye Wang & Ye Duan, 2022. "Research on the Impact of Output Adjustment Strategy and Carbon Trading Policy on the Response, Stability and Complexity of Steel Market under the Dynamic Game," Sustainability, MDPI, vol. 14(19), pages 1-40, September.
    3. Wen-Hsien Tsai, 2020. "Carbon Emission Reduction—Carbon Tax, Carbon Trading, and Carbon Offset," Energies, MDPI, vol. 13(22), pages 1-7, November.
    4. Feng, Huchen & Hu, Yu-Jie & Li, Chengjiang & Wang, Honglei, 2023. "Rolling horizon optimisation strategy and initial carbon allowance allocation model to reduce carbon emissions in the power industry: Case of China," Energy, Elsevier, vol. 277(C).
    5. Di Li & Qianbin Di & Hao Zhang & Daquan Zhang & Zenglin Han & Ye Duan, 2022. "Research on the Impact of Output Adjustment Strategy and Carbon Tax Policy on the Stability of the Steel Market," Energies, MDPI, vol. 15(18), pages 1-31, September.

    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. Chi, Yuan-ying & Zhao, Hao & Hu, Yu & Yuan, Yong-ke & Pang, Yue-xia, 2022. "The impact of allocation methods on carbon emission trading under electricity marketization reform in China: A system dynamics analysis," Energy, Elsevier, vol. 259(C).
    2. Ping Che & Yanyan Zhang & Jin Lang, 2019. "Emission-Intensity-Based Carbon Tax and Its Impact on Generation Self-Scheduling," Energies, MDPI, vol. 12(5), pages 1-17, February.
    3. Yu, Zhongjue & Geng, Yong & Calzadilla, Alvaro & Bleischwitz, Raimund, 2022. "China's unconventional carbon emissions trading market: The impact of a rate-based cap in the power generation sector," Energy, Elsevier, vol. 255(C).
    4. Leibbrandt, Andreas & Lynham, John, 2018. "Does the allocation of property rights matter in the commons?," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 201-217.
    5. Zhu, Bangzhu & Yuan, Lili & Ye, Shunxin, 2019. "Examining the multi-timescales of European carbon market with grey relational analysis and empirical mode decomposition," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 517(C), pages 392-399.
    6. Tang, Ling & Wu, Jiaqian & Yu, Lean & Bao, Qin, 2017. "Carbon allowance auction design of China's emissions trading scheme: A multi-agent-based approach," Energy Policy, Elsevier, vol. 102(C), pages 30-40.
    7. Li, Yan & Feng, Tian-tian & Liu, Li-li & Zhang, Meng-xi, 2023. "How do the electricity market and carbon market interact and achieve integrated development?--A bibliometric-based review," Energy, Elsevier, vol. 265(C).
    8. Rita Sousa & Luís Aguiar-Conraria, 2014. "Dynamics of CO2 price drivers," NIPE Working Papers 02/2014, NIPE - Universidade do Minho.
    9. Julien Chevallier & Yannick Le Pen & Benoît Sévi, 2009. "Options Introduction and Volatility in the EU ETS," Working Papers halshs-00405709, HAL.
    10. Mansanet-Bataller, Maria & Chevallier, Julien & Hervé-Mignucci, Morgan & Alberola, Emilie, 2011. "EUA and sCER phase II price drivers: Unveiling the reasons for the existence of the EUA-sCER spread," Energy Policy, Elsevier, vol. 39(3), pages 1056-1069, March.
    11. Rachid Boutti & El Amri Adil & Florence Rodhain, 2019. "Multivariate Analysis of a Time Series EU ETS: Methods and Applications in Carbon Finance," Post-Print hal-03676358, HAL.
    12. Adil El Amri & Rachid Boutti & Salah Oulfarsi & Florence Rodhain & Brahim Bouzahir, 2020. "Carbon financial markets underlying climate risk management, pricing and forecasting: Fundamental analysis," Post-Print hal-03120782, HAL.
    13. Yue-Jun Zhang, 2016. "Research on carbon emission trading mechanisms: current status and future possibilities," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 39(1/2), pages 89-107.
    14. Xie, Qiwei & Hao, Jingjing & Li, Jingyu & Zheng, Xiaolong, 2022. "Carbon price prediction considering climate change: A text-based framework," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 382-401.
    15. Boersen, Arieke & Scholtens, Bert, 2014. "The relationship between European electricity markets and emission allowance futures prices in phase II of the EU (European Union) emission trading scheme," Energy, Elsevier, vol. 74(C), pages 585-594.
    16. Lutz, Benjamin Johannes & Pigorsch, Uta & Rotfuß, Waldemar, 2013. "Nonlinearity in cap-and-trade systems: The EUA price and its fundamentals," Energy Economics, Elsevier, vol. 40(C), pages 222-232.
    17. Jia, Zhijie & Wen, Shiyan & Lin, Boqiang, 2021. "The effects and reacts of COVID-19 pandemic and international oil price on energy, economy, and environment in China," Applied Energy, Elsevier, vol. 302(C).
    18. Cui, Qiang & Li, Ye & Wei, Yi-Ming, 2017. "Exploring the impacts of EU ETS on the pollution abatement costs of European airlines: An application of Network Environmental Production Function," Transport Policy, Elsevier, vol. 60(C), pages 131-142.
    19. Chevallier, Julien & Le Pen, Yannick & Sévi, Benoît, 2011. "Options introduction and volatility in the EU ETS," Resource and Energy Economics, Elsevier, vol. 33(4), pages 855-880.
    20. Julien Chevallier & Stéphane Goutte, 2017. "Estimation of Lévy-driven Ornstein–Uhlenbeck processes: application to modeling of $$\hbox {CO}_2$$ CO 2 and fuel-switching," Annals of Operations Research, Springer, vol. 255(1), pages 169-197, August.

    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:12:y:2019:i:9:p:1624-:d:226836. 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.