Gains associated with linking the EU and Chinese ETS under different assumptions on restrictions, allowance endowments, and international trade

نویسندگان

چکیده

Linking the EU and Chinese Emission Trading Systems (ETS) increases cost-efficiency of reaching greenhouse gas mitigation targets, but both partners will benefit – if at all to different degrees. Using global computable-general equilibrium (CGE) model DART Kiel, we evaluate effects linking ETS in combination with 1) restricted allowances trading, 2) adjusted allowance endowments compensate China, 3) altered Armington elasticities when Nationally Determined Contribution (NDC) targets are met. We find that generally, from their respective trading systems. Yet, while prefers full linking, China favors trading. Adjusted which shift reduction obligations cannot sufficiently so as make attractive Gains associated increase higher for decrease EU. Overall, favor options ETS. Moreover, heterogeneous impacts across countries could cause dissent among regions, potentially increasing difficulty finding a solution favorable partners.

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ژورنال

عنوان ژورنال: Energy Economics

سال: 2021

ISSN: ['1873-6181', '0140-9883']

DOI: https://doi.org/10.1016/j.eneco.2021.105630