Understanding the Interactions between Emissions Trading Systems and Renewable Energy Standards Using a Multi-Regional CGE Model of China
Many countries have introduced policy measures, such as carbon pricing, greenhouse gas offsetting mechanisms, renewable energy standards, and energy efficiency improvements, to achieve their climate change mitigation targets. However, in many insta...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/260221501786888730/Understanding-the-interactions-between-emissions-trading-systems-and-renewable-energy-standards-using-a-multi-regional-CGE-model-of-China http://hdl.handle.net/10986/27965 |
| Summary: | Many countries have introduced policy
measures, such as carbon pricing, greenhouse gas offsetting
mechanisms, renewable energy standards, and energy
efficiency improvements, to achieve their climate change
mitigation targets. However, in many instances, these
measures overlap in ways that may dilute each policy's
greenhouse gas reduction potential. This study examines how
a renewable energy standard in the power sector would
interact with a national emission trading scheme that is
introduced to achieve a greenhouse gas mitigation target.
Using a static, multiregional computable general equilibrium
model of China to simulate policy measures, the study finds
that the addition of a separate renewable energy standard
policy would increase the economic cost for achieving a
target level of greenhouse gas mitigation. The study
concludes that although renewable energy standard policies
promote the use of renewable energies, they are an economic
burden from the perspective of reducing greenhouse gas
emissions if a carbon pricing mechanism is in place. |
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