Understanding the Interactions between Emissions Trading Systems and Renewable Energy Standards Using a Multi-Regional CGE Model of China

Fan, Ying ; Wu, Jie ; Timilsina, Govinda ; Xia, Yan

World Bank, Washington, DC

关键词: EMISSIONS TRADING SCHEME;    RENEWABLE ENERGY;    CGE MODELS;    CLIMATE CHANGE MITIGATION;   

DOI  :  10.1596/1813-9450-8159
RP-ID  :  WPS8159

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Many countries have introduced policymeasures, such as carbon pricing, greenhouse gas offsettingmechanisms, renewable energy standards, and energyefficiency improvements, to achieve their climate changemitigation targets. However, in many instances, thesemeasures overlap in ways that may dilute each policy'sgreenhouse gas reduction potential. This study examines howa renewable energy standard in the power sector wouldinteract with a national emission trading scheme that isintroduced to achieve a greenhouse gas mitigation target.Using a static, multiregional computable general equilibriummodel of China to simulate policy measures, the study findsthat the addition of a separate renewable energy standardpolicy would increase the economic cost for achieving atarget level of greenhouse gas mitigation. The studyconcludes that although renewable energy standard policiespromote the use of renewable energies, they are an economicburden from the perspective of reducing greenhouse gasemissions if a carbon pricing mechanism is in place.