IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i13p5504-d1424166.html

Quantitative Approaches for Analyzing the Potential Effectiveness of Vietnam’s Emissions Trading System: A Systematic Review

Author

Listed:
  • Anh Quynh Tang

    (Graduate School of Science and Technology, University of Tsukuba, 1-1-1 Tennodai, Tsukuba 305-8572, Ibaraki, Japan)

  • Takeshi Mizunoya

    (Institute of Life and Environmental Sciences, University of Tsukuba, 1-1-1 Tennodai, Tsukuba 305-8572, Ibaraki, Japan)

Abstract

Carbon pricing initiatives have been developed globally in recent decades. Among carbon pricing initiatives, direct carbon pricing, particularly the emissions trading system (ETS), has attracted the interest of stakeholders and nations. With its ambitious potential for climate change mitigation, Vietnam has considered establishing a domestic ETS. However, studies on the effectiveness and impact of Vietnam’s ETS are scarce. This study reviews the quantitative approaches to assessing Vietnam’s ETS and evaluates the methodologies, limitations, and challenges of current quantitative assessments such as the simple reduced-form emission projection method, computable general equilibrium (CGE), input–output analysis (IOA), and multi-criteria analysis. CGE and IOA are highly recommended to obtain comprehensive results. However, IOA is more capable of avoiding numerous assumptions, complicating the use of CGE. This study recommends directions for possible innovative improvements for utilizing IOA in future research on Vietnam’s ETS; thus, suggesting a competent approach for effectively analyzing ETS.

Suggested Citation

  • Anh Quynh Tang & Takeshi Mizunoya, 2024. "Quantitative Approaches for Analyzing the Potential Effectiveness of Vietnam’s Emissions Trading System: A Systematic Review," Sustainability, MDPI, vol. 16(13), pages 1-14, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5504-:d:1424166
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/13/5504/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/13/5504/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Boyce, James K., 2018. "Carbon Pricing: Effectiveness and Equity," Ecological Economics, Elsevier, vol. 150(C), pages 52-61.
    2. ten Raa,Thijs, 2006. "The Economics of Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521841795, Enero-Abr.
    3. Piris-Cabezas, Pedro & Lubowski, Ruben N. & Leslie, Gabriela, 2023. "Estimating the potential of international carbon markets to increase global climate ambition," World Development, Elsevier, vol. 167(C).
    4. World Bank, "undated". "State and Trends of Carbon Pricing 2020 [Situación y tendencias de la fijación del precio al carbono 2020]," World Bank Publications - Reports 33809, The World Bank Group.
    5. Coxhead, Ian & Wattanakuljarus, Anan & Nguyen, Chan V., 2013. "Are Carbon Taxes Good for the Poor? A General Equilibrium Analysis for Vietnam," World Development, Elsevier, vol. 51(C), pages 119-131.
    6. Burniaux, Jean-March & Truong, Truong P., 2002. "Gtap-E: An Energy-Environmental Version Of The Gtap Model," Technical Papers 28705, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Chang, Lei & Mohsin, Muhammad & Hasnaoui, Amir & Taghizadeh-Hesary, Farhad, 2023. "Exploring carbon dioxide emissions forecasting in China: A policy-oriented perspective using projection pursuit regression and machine learning models," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    8. Miria A. Pigato, 2019. "Fiscal Policies for Development and Climate Action," World Bank Publications - Books, The World Bank Group, number 31051, April.
    9. C. Oliveira & D. Coelho & C. H. Antunes, 2016. "Coupling input–output analysis with multiobjective linear programming models for the study of economy–energy–environment–social (E3S) trade-offs: a review," Annals of Operations Research, Springer, vol. 247(2), pages 471-502, December.
    Full references (including those not matched with items on IDEAS)

    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. Bourgeois, Cyril & Giraudet, Louis-Gaëtan & Quirion, Philippe, 2021. "Lump-sum vs. energy-efficiency subsidy recycling of carbon tax revenue in the residential sector: A French assessment," Ecological Economics, Elsevier, vol. 184(C).
    2. Nong, Duy, 2018. "General equilibrium economy-wide impacts of the increased energy taxes in Vietnam," Energy Policy, Elsevier, vol. 123(C), pages 471-481.
    3. Nong, Duy & Nguyen, Trung H. & Wang, Can & Van Khuc, Quy, 2020. "The environmental and economic impact of the emissions trading scheme (ETS) in Vietnam," Energy Policy, Elsevier, vol. 140(C).
    4. Inhwan Ko & Taedong Lee, 2022. "Carbon pricing and decoupling between greenhouse gas emissions and economic growth: A panel study of 29 European countries, 1996–2014," Review of Policy Research, Policy Studies Organization, vol. 39(5), pages 654-673, September.
    5. Dissanayake, Sumali & Mahadevan, Renuka & Asafu-Adjaye, John, 2018. "How efficient are market-based instruments in mitigating climate change in small emitter South Asian economies?," Economic Modelling, Elsevier, vol. 75(C), pages 169-180.
    6. Andrea Baranzini & Stefano Carattini & Linda Tesauro, 2021. "Designing Effective and Acceptable Road Pricing Schemes: Evidence from the Geneva Congestion Charge," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 417-482, July.
    7. Monge, Juan J. & Bryant, Henry L. & Gan, Jianbang & Richardson, James W., 2016. "Land use and general equilibrium implications of a forest-based carbon sequestration policy in the United States," Ecological Economics, Elsevier, vol. 127(C), pages 102-120.
    8. Lechón, Y. & de la Rúa, C. & Rodríguez, I. & Caldés, N., 2019. "Socioeconomic implications of biofuels deployment through an Input-Output approach. A case study in Uruguay," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 178-191.
    9. Roberto Roson & Francesco Bosello, 2007. "Estimating a Climate Change Damage Function through General Equilibrium Modeling," Working Papers 2007_08, Department of Economics, University of Venice "Ca' Foscari".
    10. Yannic Rehm & Lucas Chancel, 2022. "Measuring the Carbon Content of Wealth Evidence from France and Germany," PSE Working Papers halshs-03828939, HAL.
    11. Yazid Dissou & Lilia Karnizova & Qian Sun, 2015. "Industry-level Econometric Estimates of Energy-Capital-Labor Substitution with a Nested CES Production Function," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(1), pages 107-121, March.
    12. Florian Blöchl & Fabian J. Theis & Fernando Vega-Redondo & Eric O'N. Fisher, 2010. "Which Sectors of a Modern Economy are most Central?," CESifo Working Paper Series 3175, CESifo.
    13. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Llorca, Manuel & Rodriguez-Alvarez, Ana, 2024. "Economic, environmental, and energy equity convergence: Evidence of a multi-speed Europe?," Ecological Economics, Elsevier, vol. 219(C).
    15. Isaak Mengesha & Debraj Roy, 2025. "Carbon pricing drives critical transition to green growth," Nature Communications, Nature, vol. 16(1), pages 1-19, December.
    16. Partnership for Market Readiness, 2021. "Beyond Mitigation," World Bank Publications - Reports 35624, The World Bank Group.
    17. Weimer-Jehle, Wolfgang & Buchgeister, Jens & Hauser, Wolfgang & Kosow, Hannah & Naegler, Tobias & Poganietz, Witold-Roger & Pregger, Thomas & Prehofer, Sigrid & von Recklinghausen, Andreas & Schippl, , 2016. "Context scenarios and their usage for the construction of socio-technical energy scenarios," Energy, Elsevier, vol. 111(C), pages 956-970.
    18. Taheripour, Farzad & Tyner, Wallace E., 2014. "Shale oil and gas booms: Consequences for agricultural and biofuel industries," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170238, Agricultural and Applied Economics Association.
    19. Coppens, Léo & Dietz, Simon & Venmans, Frank, 2025. "Optimal climate policy under exogenous and endogenous technical change: Making sense of the different approaches," Journal of Environmental Economics and Management, Elsevier, vol. 133(C).
    20. Nong, Duy & Nguyen, Duong Binh & Nguyen, Trung H. & Wang, Can & Siriwardana, Mahinda, 2020. "A stronger energy strategy for a new era of economic development in Vietnam: A quantitative assessment," Energy Policy, Elsevier, vol. 144(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:16:y:2024:i:13:p:5504-:d:1424166. 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.