Carbon emission trading system and stock price crash risk of heavily polluting listed companies in China:based on analyst coverage mechanism

This study reveals the inconsistencies between the negative externalities of carbon emissions and the recognition condition of accounting statements.Hence,the study identifies that heavily polluting enterprises in China have severe off-balance sheet carbon reduction risks before implementing the carbon emission trading system(CETS).Through the staggered difference-in-difference(DID)model and the propen-sity score matching-DID model,the impact of CETS on reducing the risk of stock price crashes is examined using data from China’s A-share heavily polluting listed companies from 2007 to 2019.The results of this study are as follows:(1)CETS can significantly reduce the risk of stock price crashes for heavily polluting companies in the pilot areas.Specifically,CETS reduces the skewness(negative conditional skewness)and down-to-up volatility of the firm-specific weekly returns by 8.7%and 7.6%,respectively.(2)Heterogeneity analysis further shows that the impacts of CETS on the risk of stock price crashes are more significant for heavily polluting enterprises with the bear market condition,short-sighted management,and intensive air pollution.(3)Mechanism tests show that CETS can reduce analysts’coverage of heavy polluters,reducing the risk of stock price crashes.This study reveals the role of CETS from the stock price crash risk perspective and helps to clarify the relationship between climatic risk and corporate financial risk.

Blockchain-Based Secure and Fair IoT Data Trading System with Bilateral Authorization

These days,data is regarded as a valuable asset in the era of the data economy,which demands a trading platform for buying and selling data.However,online data trading poses challenges in terms of security and fairness because the seller and the buyer may not fully trust each other.Therefore,in this paper,a blockchain-based secure and fair data trading system is proposed by taking advantage of the smart contract and matchmaking encryption.The proposed system enables bilateral authorization,where data trading between a seller and a buyer is accomplished only if their policies,required by each other,are satisfied simultaneously.This can be achieved by exploiting the security features of the matchmaking encryption.To guarantee non-repudiation and fairness between trading parties,the proposed system leverages a smart contract to ensure that the parties honestly carry out the data trading protocol.However,the smart contract in the proposed system does not include complex cryptographic operations for the efficiency of onchain processes.Instead,these operations are carried out by off-chain parties and their results are used as input for the on-chain procedure.The system also uses an arbitration protocol to resolve disputes based on the trading proof recorded on the blockchain.The performance of the protocol is evaluated in terms of off-chain computation overhead and on-chain gas consumption.The results of the experiments demonstrate that the proposed protocols can enable the implementation of a cost-effective data trading system.

Technical System Construction in the Market Trading System for Demand Response Based on the Energy Internet

With the explosive growth of variable renewable energy,the balance between the supply and demand of the power grid is faced with new challenges.Based on the development experience from typical countries and the state quo in China,this paper further analyzes the system architecture and development trend of demand response under the background of Energy Internet.Five dimensions are considered:Energy Internet platform,demand response application scenarios,system architecture,information technology system construction,and demand response development trend.The results show that the application of the Energy Internet platform can effectively solve the problems of data acquisition and processing,“terminal-edge-network-cloud”cooperation of demand response,etc.The system architecture of the demand response platform that supports user resource management,user information access,control instruction receiving,control strategy issuing,and response process monitoring is proposed in this paper.It is also helpful to provide a feasible technical choice for expanding the application services of Energy Internet towards government and society.

Study on the investment value and investment opportunity of renewable energies under the carbon trading system

China has promised to start the national carbon trading system in 2017.In the carbon trading system,the renewable energy projects may obtain additional benefits through the Certified Carbon Emission Reduction(CCER) trade.As the carbon price fluctuates along with the market conditions,such fluctuation enables the renewable power projects to acquire the rights of an option,i.e.it may contain an even higher value due to the uncertainties in the future.While making an investment decision,the renewable power companies may choose to make the investment immediately,or postpone the investment and accumulate more information to increase the return of investment;and for immediate investments,the return must be sufficient to exceed the potential value of a waiting option.To study the investment in renewable power projects subject to the fluctuation of carbon price,this paper adopts the trinomial tree model of real options to estimate the net present value(NPV) and real option value(ROV) of three types of renewable power projects;according to the decision-making rules of real options to defer,all the three types of projects will exercise the option to postpone the investment decision.This thesis also calculates the benchmark prices of the three types of renewable projects at different times,in the two situations of having no government subsidy and having the government subsidy,so as to determine the investment opportunity of a project.The benchmark price decreases gradually along with the increase of government subsidy,indicating that the government subsidy will stimulate the investment in renewable projects.The benchmark price also increases gradually along with the lapse of time,indicating that the uncertainty will increase together with the time span and thus requires an even higher carbon price to determine the investment opportunity.This thesis also analyzes the sensitivity of factors affecting the investment in renewable projects and draws the conclusion that the fluctuation of carbon price is positively related with the benchmark price of renewable power projects,which indicates that the fluctuation of carbon price increases the option value of an investment but postpones the time of investment.As the China's carbon trading system improves gradually,the carbon price will reach a stable status,thus stimulate the power companies to invest in the renewable projects.

Carbon Emission Trading System of New Zealand and Its Enlightenment for China

The design characteristics and operation results of carbon emission trading system of New Zealand was introduced in this paper. The results suggested that taking forest carbon trade as the only one supplying source of greenhouse gas emission improved the foreseeability in forest maintenance,and strengthened the effect of forestation. According to this,the author suggested that carbon emission trading market in which forest carbon trade was the only one supplying source should be cultivated in China. A compensation mechanism that industry compensated forestry should be established. A social participated,highly united,coordinated and mutual intermediated carbon trading market should be built.

China Mulls National Pollution Permit Trading System

China will look into establish-ing a nation-wide trading system for pollution permits as part of efforts to use mar-ket mechanisms to help clean up its environment,the country’s top environ-ment official was quoted as saying by China Daily.

Compliance with WTO Decisions Essential for Multilateral Economic and Trading System

Respecting the WTO decision sends a positive signal for maintaining the authority,efficiency,and rationality of the multilateral economic and trading system.

Deeper integration into the multilateral trading system

The year 2022 marked the 20th anniversary of China’s accession to the WTO.In view of the great achieve­ments made in China’s textile industry and the great changes that have taken place in the global textile industry in the 20 years since China’s accession to the WTO,China Textile interviewed Gu Qingliang,professor of Donghua University,to review the extraordinary course of China’s textile industry in the past 20 years.

Optimal Operation Strategy of Electricity-Hydrogen Regional Energy System under Carbon-Electricity Market Trading

Given the“double carbon”objective and the drive toward low-carbon power,investigating the integration and interaction within the carbon-electricity market can enhance renewable energy utilization and facilitate energy conservation and emission reduction endeavors.However,further research is necessary to explore operational optimization methods for establishing a regional energy system using Power-to-Hydrogen(P2H)technology,focusing on participating in combined carbon-electricity market transactions.This study introduces an innovative Electro-Hydrogen Regional Energy System(EHRES)in this context.This system integrates renewable energy sources,a P2H system,cogeneration units,and energy storage devices.The core purpose of this integration is to optimize renewable energy utilization and minimize carbon emissions.This study aims to formulate an optimal operational strategy for EHRES,enabling its dynamic engagement in carbon-electricity market transactions.The initial phase entails establishing the technological framework of the electricity-hydrogen coupling system integrated with P2H.Subsequently,an analysis is conducted to examine the operational mode of EHRES as it participates in carbon-electricity market transactions.Additionally,the system scheduling model includes a stepped carbon trading price mechanism,considering the combined heat and power generation characteristics of the Hydrogen Fuel Cell(HFC).This facilitates the establishment of an optimal operational model for EHRES,aiming to minimize the overall operating cost.The simulation example illustrates that the coordinated operation of EHRES in carbon-electricity market transactions holds the potential to improve renewable energy utilization and reduce the overall system cost.This result carries significant implications for attaining advantages in both low-carbon and economic aspects.

Two-Stage Low-Carbon Economic Dispatch of Integrated Demand Response-Enabled Integrated Energy System with Ladder-Type Carbon Trading

Driven by the goal of“carbon neutrality”and“emission peak”,effectively controlling system carbon emissions has become significantly important to governments around the world.To this end,a novel two-stage low-carbon economic scheduling framework that considers the coordinated optimization of ladder-type carbon trading and integrated demand response(IDR)is proposed in this paper for the integrated energy system(IES),where the first stage determines the energy consumption plan of users by leveraging the price-based electrical-heat IDR.In contrast,the second stage minimizes the system total cost to optimize the outputs of generations with consideration of the uncertainty of renewables.In addition,to fully exploit the system’s emission reduction potential,a carbon trading cost model with segmented CO_(2) emission intervals is built by introducing a reward-penalty ladder-type carbon trading mechanism,and the flexible thermal comfort elasticity of customers is taken into account by putting forward a predicted mean vote index on the load side.The CPLEX optimizer resolves the two-stage model,and the study results on a modified IES situated in North China show the proposed model can effectively reduce carbon emissions and guarantee economical efficiency operation of the system.

Electricity Carbon Quota Trading Scheme based on Certificateless Signature and Blockchain

The carbon tradingmarket can promote“carbon peaking”and“carbon neutrality”at low cost,but carbon emission quotas face attacks such as data forgery,tampering,counterfeiting,and replay in the electricity trading market.Certificateless signatures are a new cryptographic technology that can address traditional cryptography’s general essential certificate requirements and avoid the problem of crucial escrowbased on identity cryptography.However,most certificateless signatures still suffer fromvarious security flaws.We present a secure and efficient certificateless signing scheme by examining the security of existing certificateless signature schemes.To ensure the integrity and verifiability of electricity carbon quota trading,we propose an electricity carbon quota trading scheme based on a certificateless signature and blockchain.Our scheme utilizes certificateless signatures to ensure the validity and nonrepudiation of transactions and adopts blockchain technology to achieve immutability and traceability in electricity carbon quota transactions.In addition,validating electricity carbon quota transactions does not require time-consuming bilinear pairing operations.The results of the analysis indicate that our scheme meets existential unforgeability under adaptive selective message attacks,offers conditional identity privacy protection,resists replay attacks,and demonstrates high computing and communication performance.

An Energy Trading Method Based on Alliance Blockchain and Multi-Signature

Blockchain,known for its secure encrypted ledger,has garnered attention in financial and data transfer realms,including the field of energy trading.However,the decentralized nature and identity anonymity of user nodes raise uncertainties in energy transactions.The broadcast consensus authentication slows transaction speeds,and frequent single-point transactions in multi-node settings pose key exposure risks without protective measures during user signing.To address these,an alliance blockchain scheme is proposed,reducing the resource-intensive identity verification among nodes.It integrates multi-signature functionality to fortify user resources and transac-tion security.A novel multi-signature process within this framework involves neutral nodes established through central nodes.These neutral nodes participate in multi-signature’s signing and verification,ensuring user identity and transaction content privacy.Reducing interactions among user nodes enhances transaction efficiency by minimizing communication overhead during verification and consensus stages.Rigorous assessments on reliability and operational speed highlight superior security performance,resilient against conventional attack vectors.Simulation shows that compared to traditional solutions,this scheme has advantages in terms of running speed.In conclusion,the alliance blockchain framework introduces a novel approach to tackle blockchain’s limitations in energy transactions.The integrated multi-signature process,involving neutral nodes,significantly enhances security and privacy.The scheme’s efficiency,validated through analytical assessments and simulations,indicates robustness against security threats and improved transactional speeds.This research underscores the potential for improved security and efficiency in blockchain-enabled energy trading systems.

“China Shock”or China Dividend?-China GVC Participation’s Effects on Trading Partners’Technological Progress

This paper explores the effects of China’s global value chain(GVC)participation on technological progress in trading-partner countries based on estimated data on value-added trade between China and 52 trading partners.We find that,first,although China’s exports lowered the total factor productivity(TFP)of its trading partners(competitive effect),its imports greatly increased trading partners’TFP(effect of scale).This implies that China’s GVC participation is beneficial to its trading partners’technological progress in the form of a considerable technology dividend effect.Second,China’s export dividend effect compensates for the negative effect of Chinese competition on trading partners’technological progress;the innovation effects attributable to China’s imports reinforce the positive effects of scale on technological progress.When innovation is factored in,the China dividend thus becomes further reinforced.Third,China’s merchandise imports have a diminishing positive effect on technological progress in trading partners as geographical distance increases,but trade in services transcends geographical boundaries,and the positive technological progress effect of China’s service imports do not diminish as distance increases.We find that the“China dividend”from China’s GVC participation is a significant contributor to technological progress in partner nations,and China’s imports are conducive to innovation and technological progress in developed countries in the long run.

Trading in Fast-ChangingMarkets withMeta-Reinforcement Learning

How to find an effective trading policy is still an open question mainly due to the nonlinear and non-stationary dynamics in a financial market.Deep reinforcement learning,which has recently been used to develop trading strategies by automatically extracting complex features from a large amount of data,is struggling to deal with fastchanging markets due to sample inefficiency.This paper applies the meta-reinforcement learning method to tackle the trading challenges faced by conventional reinforcement learning(RL)approaches in non-stationary markets for the first time.In our work,the history trading data is divided into multiple task data and for each of these data themarket condition is relatively stationary.Then amodel agnosticmeta-learning(MAML)-based tradingmethod involving a meta-learner and a normal learner is proposed.A trading policy is learned by the meta-learner across multiple task data,which is then fine-tuned by the normal learner through a small amount of data from a new market task before trading in it.To improve the adaptability of the MAML-based method,an ordered multiplestep updating mechanism is also proposed to explore the changing dynamic within a task market.The simulation results demonstrate that the proposed MAML-based trading methods can increase the annualized return rate by approximately 180%,200%,and 160%,increase the Sharpe ratio by 180%,90%,and 170%,and decrease the maximum drawdown by 30%,20%,and 40%,compared to the traditional RL approach in three stock index future markets,respectively.

China Remains Africa’s Top Trading Partner

China has remained Africa’s largest trading partner for 15 consecutive years,with bilateral trade reaching a record$282.1 billion in 2023,Ministry of Commerce official Jiang Wei said at a press conference on 31 January.Economic and trade cooperation is the ballast and propeller of China-Africa relations,he said.

Verifying Functions in Online Stock Trading Systems

Temporal colored Petri nets, an extension of temporal Petri nets, areintroduced in this paper. It can distinguish the personality of individuals (tokens), describeclearly the causal and temporal relationships between events in concurrent systems, and representelegantly certain fundamental properties of concurrent systems, such as eventuality and fairness.The use of this method is illustrated with an example of modeling and formal verification of anonline stock trading system. The functional correctness of the modeled system is formally verifiedbased on the temporal colored Petri net model and temporal assertions. Also, some main properties ofthe system are analyzed. It has been demonstrated sufficiently that temporal colored Petri nets canverify efficiently some time-related properties of concurrent systems, and provide both the powerof dynamic representation graphically and the function of logical inference formally. Finally,future work is described.

Effect analysis of carbon trading on Economy-Energy-Environment system and calculation of reasonable carbon price intervals

This paper constructs a 4-lier computable general equilibrium model which includes such modules as modeling carbon emission constraints and carbon trading(CT),and incorporates the cost of carbon emissions into constant elasticity of substitute production function.Under scenario settings under different carbon abatement targets,based on 2007 national social accounting matrix and related statistical data about energy consumption and carbon emission,effects on economic outputs,energy consumption,and carbon abatement are estimated and analyzed at both macro and sector level.By calculating selected novel indicators that compromise between macroeconomic opportunity cost and achievable carbon abatement,reasonable carbon price intervals are given for enhancing the robustness and liquidity of carbon market.Further,by decomposition and share-weighted methods,expected carbon abatement and energy price are measured and analyzed in details.Some results are meaningful for fundamental design of the future carbon market.Given constant energy utilization and carbon abatement technologies at the macro level,the higher the carbon price the more actual carbon abatement;the more gross domestic product loss,the less energy consumption.Accwding to the overall situation estimated for 2007 in China,the advice given is to introduce a carbon abatement target rate(R_c)of-10%,which is helpful to make carbon market stable against unexpected carbon price shocks between[6.9,35]/tC with less economic loss.According to Kaya decomposition,after introduction of carbon pricing,carbon abatement is mainly contributed by the effects of energy intensity(EI)and technical progress.Further,CT may help reduce energy consumption and induce transformation to a low-carbon energy structure.At the sector level,the introduction of CT could induce economic recession in all sectors,especially energy.However,the overall economic structure remains unchanged to some extent.CT will help reduce energy consumption in all sectors,especially energy.Overall utilization costs of the energy composite can be divided in two,market price and carbonrelated costs.Carbon-related costs mainly contribute to variation in the utilization cos of the energy composite;carbon pricing may help non-energy sectors achieve sufficient carbon abatement by pushing up energy utilization cost.However,despite achievable carbon abatement by the energy sector being relatively high,induced by carbon pricing,there is still significant potential for other incentive policies to stimulate further abatement,such as energy resources taxation and transportation fuel taxation,especially in the sectors of coal and transportation.Finally,some advice is proposed in regard to policy decisions and further research.

Can the Trading System Survive US-China Trade Friction？

Donald Trump has sought to change US trading relationships by raising protection at home and taxing the offshore activities of US companies abroad. These measures, which both use and violate trade rules, have provoked retaliation from other countries. Such friction has restricted and distorted trade and investment, undermined the rules-based trading system and perhaps permanently damaged global value chains that depend on stable rules for market access. Trump has justified some of his measures as a response to China＇s alleged unfair practices and indeed, China has adopted industrial and technology policies that are formally neutral between domestic and foreign firms but in practice have led foreign firms to complain about discriminatory practices that favor Chinese firms. The US friction with China is unfortunate because instead of trying to bully China into submission in a tariff war, the US could have dealt with many of its concerns more effectively by cooperating with other countries and taking actions that are consistent with maintaining the rules-based system. While the US has undermined its leadership role, the overall damage to the trading system could still be limited if other countries, especially China, take actions that sustain and strengthen it.

Carbon emission trading system of China： a linked market vs. separated markets

The Chinese government intends to upgrade its current provincial carbon emission trading pilots to a nationwide scheme by 2015. This study investigates two of scenarios： separated provincial markets and a linked inter- provincial market. The carbon abatement effects of separated and linked markets are compared using two pilot provinces of Hubei and Guangdong based on a computable general equilibrium model termed Sino- TERMCo2. Simulation results show that the linked market can improve social welfare and reduce carbon emission intensity for the nation as well as for the Hubei-Guangdong bloc compared to the separated market. However, the combined system also distributes welfare more unevenly and thus increases social inequity. On the policy ground, the current results suggest that a well-constructed, nation- wide carbon market complemented with adequate welfare transfer policies can be employed to replace the current top-down abatement target disaggregation practice.

Revitalizing the Global Trading System＂ What Could the G20 Do？

Since 2008, G20 leaders have repeatedly committed themselves not to resort to protectionism and to conclude WTO negotiations expeditiously. The jury is out on the extent to which they have lived up to the first promise,＂ they have failed to deliver the second. Anemic global trade growth rates since 2010 imply that trade has not been a driver of much-needed economic dynamism. This paper argues that the G20 should pursue a more ambitious trade agenda and that there is much that greater leadership by the G20 could do to reinvigorate the trading system. A first step would be to commit to concrete actions that can be implemented by individual governments on a concerted basis and that center on reducing trade costs and improving access to services for firms. The Chinese presidency should also seek to have the G20 commit to more effective monitoring and analysis of trade policy broadly defined （including subsidies and investment incentives） and the impact of the many preferential trade agreements involving China, the EU and the USA, the world＇s largest trading powers.