TITLE

Uncertainty, cost-effectiveness and environmental safety of robust carbon trading: integrated approach

AUTHOR(S)
Ermolieva, T.; Ermoliev, Y.; Jonas, M.; Obersteiner, M.; Wagner, F.; Winiwarter, W.
PUB. DATE
June 2014
SOURCE
Climatic Change;Jun2014, Vol. 124 Issue 3, p633
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Carbon markets, like other commodity markets, are volatile. They react to stochastic 'disequilibrium' spot prices, which may be affected by inadequate policies, speculations and bubbles. The market-based emission trading, therefore, does not necessarily minimize abatement costs and achieve emission reduction goals. We introduce a basic stochastic model integrating emissions reduction, monitoring and trading costs allowing us to analyze the robustness of emission and uncertainty reduction policies under environmental safety constraints asymmetric information and other multiple anthropogenic and natural uncertainties. Explicit treatment of uncertainties provides incentives for reducing them before trading. We illustrate functioning of the robust market with numerical results involving such countries as the US, Australia, Canada, Japan, EU27, Russia, Ukraine. In particular, we analyze if the knowledge about uncertainties may affect portfolios of technological and trade policies or structure of the market and how uncertainty characteristics may affect market prices and change the market structure.
ACCESSION #
96396484

 

Related Articles

  • MODELING FRAMEWORK FOR INTERMODAL DRY PORT BASED HINTERLAND LOGISTICS SYSTEM. EL HASSAN, LAAZIZ // Journal of Theoretical & Applied Information Technology;12/15/2016, Vol. 94 Issue 1, p197 

    Intermodal transportation has known a great development during last decades as consequence to the development of container transportation services but also because of its sustainability advantages. The development of gateways infrastructures (ports, air ports) but also the extension of gateway...

  • Carbon trading system for road freight transport: the impact of government regulation. L. Chen; B. Zhang; H. Hou; Taudes, A. // Advances in Transportation Studies;2013 Special Issue, p49 

    This paper investigates the influence of carbon trading system on road freight transport industry. The framework of the carbon trading system is defined by six criteria. Using a cost-benefit model, optimal strategies of road freight companies and equilibrium carbon credit price are discussed in...

  • The economic geography of European carbon market trading. Knight, Eric R. W. // Journal of Economic Geography;Sep2011, Vol. 11 Issue 5, p817 

    The European Union Emissions Trading Scheme (EU ETS) is the world’s first regional carbon trading market. This article is a quantitative attempt to examine the temporal and spatial geography of European carbon trading. We show that carbon markets are especially sensitive to two factors:...

  • Measuring technical and allocative efficiencies for banks in the transition countries using the Fourier flexible cost function. Tai-Hsin Huang; Chung-Hua Shen; Kuan-Chen Chen; Shen-Ju Tseng // Journal of Productivity Analysis;Apr2011, Vol. 35 Issue 2, p143 

    The transition economies are known to have quite different market structures from the market economies. State-owned banks accounts for a major part of the financial sector in East European countries before the transition period. Since the input prices of the sector are frequently under the...

  • Stochastic Model Predictive Control for optimization costs in multi-level supply chain. Kawtar, TIKITO; Said, ACHCHAB; Youssef, BENADADA // International Journal of Computer Science Issues (IJCSI);Jan2014, Vol. 11 Issue 1, p28 

    The Model Predictive Control is a methodology very used in systems with slow dynamics like chemical process plant and supply chain. The MPC is usually used in supply chain management, under constraints like buffer limits and shipping capacities limits, based on approximations which make the...

  • Capacity-constrained supplier selection model with lost sales under stochastic demand behaviour. Kesen, Saadettin // Neural Computing & Applications;Feb2014, Vol. 24 Issue 2, p347 

    In today's market conditions, volume of demand is quite uncertain and thus it is hard to estimate. In many cases, buyer is prone to use supply chain flexibility rather than inventory holding strategy to withstand demand uncertainty. We assume that the buyer releases a replenishment order to the...

  • An examination of the cost efficiency of banks in Taiwan and China using the metafrontier cost function. Huang, Mei-Ying; Fu, Tsu-Tan // Journal of Productivity Analysis;Dec2013, Vol. 40 Issue 3, p387 

    Using the stochastic metafrontier framework of Battese et al. (J Prod Anal 21:91-103, ), this study proposes to compare and measure the cost efficiency and cost frontier gap between the banking industry in Taiwan and China. It further identifies environmental variables that determine bank's cost...

  • Carbon commitments. Langridge, Adam; Bratt, Paul; Nicholls, Faye // TCE: The Chemical Engineer;Nov2008, Issue 809, p19 

    The article offers information on the Carbon Reduction Commitment (CRC), the third major climate change instrument launched by the British government. It is intended to produce secure and cost-effective carbon savings from non-energy intensive businesses and public sector organisations....

  • Take custody of your carbon. Bankovskis, Andris // ICIS Chemical Business;11/26/2007, Vol. 272 Issue 20, p10 

    The article reports on issues concerning carbon trading. It is informed that with businesses requiring emission reductions from their supply chains, investors want to know how organizations will cope in a carbon-constrained world. The article discusses some of the best and most cost-effective...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics