气候变化领域集成服务门户(CCPortal): Price stabilization mechanisms in China’s pilot emissions trading schemes: design and performance

CCPortal

DOI	10.1080/14693062.2019.1680338
	Price stabilization mechanisms in China’s pilot emissions trading schemes: design and performance
	Wang B.; Boute A.; Tan X.
发表日期	2020
ISSN	1469-3062
卷号	20 期号:1
英文摘要	Following the experience of high price instability and unpredictability in the European Emissions Trading Scheme (ETS), the management of carbon prices is a key concern for Chinese authorities. The objective is to avoid excessive price volatility in daily trading and stabilize the intrinsic price trend. Building on environmental economics and financial market theories, this study reviews the design of carbon price stabilization mechanisms in China’s seven pilot ETSs and assesses their performance. The pilot ETSs have incorporated most price stabilization mechanisms recommended in the literature, including price ceiling–floor, intensity-based allocation, ex-post adjustment of allowances, intertemporal flexibility, and daily trading risk management. By examining this wide range of mechanisms, our analysis helps understand the different design options available to stabilize carbon prices. Furthermore, by decomposing carbon price data in the different pilot ETSs, our analysis helps evaluate the effectiveness of these mechanisms. Price ceiling–floor and intertemporal flexibility (update of ETS cap) are the most effective mechanisms for stabilizing the intrinsic price trend. Daily trading risk management mechanisms help control price volatility but have little impact on the intrinsic price trend. However, we are cautious about the desirability of regulatory intervention for influencing carbon market prices. Depending on the institutional context and their design, price stabilization mechanisms can cause regulatory uncertainty. KEY POLICY INSIGHTS The Chinese pilot ETSs provide unique input for understanding ETS regulations concerning price stabilization mechanisms and their effectiveness in achieving price stability. The details and sophistication of carbon price stabilization mechanisms can influence the performance of ETSs. Cap updates and price ceiling–floor mechanisms most significantly impact intrinsic price trends. To ensure the effectiveness of price stabilization mechanisms, it is important to separate mechanisms aimed at intrinsic price trends and at daily volatility. Excessive and unexpected regulatory intervention to stabilize prices may disturb market expectations and create uncertainty for investors. © 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group.
英文关键词	carbon price decomposition; Carbon price stabilization; Chinese pilot ETS; price volatility
来源期刊	CLIMATE POLICY
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/183788
作者单位	School of Economics, Huazhong University of Science and Technology, Wuhan, China; Faculty of Law, The Chinese University of Hong Kong, Shatin, Hong Kong; Institute for International Studies, CICTSMR, Wuhan University, Wuhan, China; Climate Change and Energy Economics Study Center, Economics and Management School, Wuhan University, Wuhan, China
推荐引用方式 GB/T 7714	Wang B.,Boute A.,Tan X.. Price stabilization mechanisms in China’s pilot emissions trading schemes: design and performance[J],2020,20(1).
APA	Wang B.,Boute A.,&Tan X..(2020).Price stabilization mechanisms in China’s pilot emissions trading schemes: design and performance.CLIMATE POLICY,20(1).
MLA	Wang B.,et al."Price stabilization mechanisms in China’s pilot emissions trading schemes: design and performance".CLIMATE POLICY 20.1(2020).