Synergistic Economic Benefits Analysis Of Energy Quota And Carbon Emission Rights Trading

With the proposal of ’Dual Control’ of energy consumption and ’Double Carbon’ goals,as two major market-based energy conservation and emission reduction policies in China,the pilot work of energy quota trading market is being promoted continuously,and the unified national carbon emission right trading system is officially opened.But there is little literature on the synergies between the two policies.In order to explore the economic benefits of synergistic trading of energy quota trading and carbon emission trading system,based on the non-radial distance function and its dual model,this paper estimates the shadow prices of energy and carbon dioxide using panel data of 36 industrial sectors in 30 provinces of China from 2006 to 2016,and simulates the economic benefits of energy quota trading and carbon emission trading system under trans-industry,trans-provincial and trans-provincial and trans-industry scenatios.Finally,under the assumption that energy quota and carbon emission quota can be recognized and exchanged,this paper simulates provincial level,industrial level and provincial-industrial level synergistic scenario of energy quota trading and carbon emission tading system.The results show that:(1)Compared with the actual results of the pilot,the transaction price of carbon emission rights estimated by the model is between 118-154 yuan/ton,which is higher than the actual market transaction price,confirming the fact that the current carbon price in China is low,indicating that the carbon emission trading market system still needs to be improved.The economic benefits of carbon emission trading system in the pilot area could reach 1.873 billion yuan,63.4%higher than the actual trading situation in the market.The trading price of energy quota is between 335-749 yuan/ton standard coal,which is consistent with the pilot project in Zhejiang.If the whole industry in the pilot province carries out energy quota trading,the total economic benefit can reach 29.18 billion yuan.(2)In the single energy quota trading scenario,Guangdong,Jiangsu and Shandong,Hubei and Henan in central China,Chongqing and Sichuan in southwest China,which are rich in energy-consuming industries and have high GDP,have the potential to obtain higher economic benefits in the energy quota trading market because of more tradable energy quota and larger energy shadow price difference.The shadow price of energy in light industry and technology-intensive industry is generally higher than that in high energy intensity industry,but the amount of tradable energy quota is lower and the economic benefit is lower than that in high energy intensity industry.(3)In the single carbon emission trading scenario,Jiangsu,Henan and Liaoning,as well as guangdong and Shandong along the coast and Sichuan in the southwest,show the potential to obtain higher economic benefits of more than 5 billion yuan.There is a big difference in emission reduction cost between the industries in municipalities andi northwest China,and trans-industry carbon emission trading in the same province is beneficial to achieve the carbon emission targets in these regions.(4)Compared with the single market,the economic benefit of the whole society in the synergistic market is higher than that in the single carbon emission trading system.In terms of narrowing the price gap between different regions,the synergistic market is superior to the single energy quota trading market.Among them,provinces with high energy intensity such as Xinjiang and provinces with intensive industries of high energy intensity such as Hebei and Guangxi show the potential of obtaining higher economic benefits.This paper draws the following enlightenments:First,it is suggested that high energy-consuming industries should be included in the energy quota trading market,and provinces and regions with high energy intensity and difficulty in achieving the goal of "dual control" of energy should be implemented first,then provinces with high economic benefits should be implemented.Second,it is suggested to allow mutual recognition and exchange of carbon emission quota and energy quota,open up the joint trading market of energy quota and carbon emission trading,and achieve a win-win situation of energy conservation and emission reduction and cost minimization.