The Influence of Allowance Allocation Methods on CO2 Emission Reduction： Experiences From the Seven China Pilots

One of the key elements influencing the performance of a carbon trading system, are the methods of allocating the initial CO2 emissions. This paper tries to use a quantitative description method to analyze the influence of the different allocation methods on the level of CO2 emissions based on the seven pilot trading markets from 2009 to 2013 in China. The results show that different methods bring about various degrees of impacts, through direct and indirect constraint mechanism, influence the CO2 emission cut finally. Although due to the complexity of the direct and indirect constraint mechanism, attempting to compare the effects of different allocation methods is difficult by using the data of carbon emission cut from seven pilot markets in China, the paper shows that the allowance allocation methods, through the constraints imposed on enterprises, significantly reduce regional carbon emissions.

Aggregated impact of allowance allocation and power dispatching on emission reduction

Climate change has become one of the most important issues for the sustainable development of social well-being.China has made great efforts in reducing CO2 emissions and promoting clean energy.Pilot Emission Trading Systems(ETSs)have been launched in two provinces and five cities in China,and a national level ETS will be implemented in the third quarter of 2017,with preparations for China’s national ETS now well under way.In the meantime,a new round of China’s electric power system reform has entered the implementation stage.Policy variables from both electricity and emission markets willimpose potential risks on the operation of generation companies(Gen Cos).Under this situation,by selecting key variables in each domain,this paper analyzes the combined effects of different allowance allocation methods and power dispatching models on power system emission.Key parameters are set based on a provincial power system in China,and the case studies are conducted based on dynamic simulation platform for macro-energy systems(DSMES)software developed by the authors.The selected power dispatching models include planned dispatch,energy saving power generation dispatch and economic dispatch.The selected initial allowance allocation methods in the emission market include the grandfathering method based on historical emissions and the benchmarking method based on actual output.Based on the simulation results and discussions,several policy implications are highlighted to help to design an effective emission market in China.

An allowance allocation method based on dynamic approximation via online inspection data for deformation control of structural parts

Deformation resulting from residual stress has been a significant issue in machining.As allowance allocation can directly impact the residual stress on part deformation,it is essential for deformation control.However,it is difficult to adjust allowance allocation by traditional simulation methods based on residual stress,as the residual stress cannot be accurately measured or predicted,and many unexpected factors during machining process cannot be simulated accurately.Different from traditional methods,this paper proposes an allowance allocation method based on dynamic approximation via online inspection data for deformation control of structural parts.An Autoregressive Integrated Moving Average(ARIMA)model for dynamic allowance allocation is established so as to approach the minimum deformation,which is based on the in-process deformation inspection data during the alternative machining process of upside and downside.The effectiveness of the method is verified both by simulation cases and real machining experiments of aircraft structural parts,and the results show that part deformation can be significantly reduced.

Will fuel switching ever happened in China’s thermal power sector?The rule of carbon market design

To assess the effectiveness of China’s emissions trading scheme(ETS)in facilitating energy structure optimization,we constructed a fuel-switching model utilizing data from 1067 generating units under the Chinese ETS framework.The model simulates the fuel-switching price in China’s thermal power sector,taking into account various allowance allocation strategies.The results show the following:1)Thermal power plants will transition from coal to gas if the current ETS auction rate surpasses 26%.2)Furthermore,in scenarios where the ETS operates independently,a transition will occur if the carbon allowance market is entirely auction-based and the carbon price attains 119.50 USD/tCO_(2).3)In a collaborative scenario involving both the ETS and a gas feed-in tariff subsidy,a carbon price of 9.39 USD/tCO_(2)will effect a transition from coal to gas,provided both the auction ratio and subsidy price are maximized.