Volume 10: Sustainable Energy Solutions for Changing the World: Part II

Achieving a low-carbon future through the inter-provincial energy-chemical-carbon markets in China Yinan Li, Song Lan, Xiaonan Wang

Abstract

In this study, inter-provincial energy, chemical and carbon markets are modeled for decentralized electricity, methanol and carbon permit trading among provinces in China under a cap-and-trade policy at province-level resolution. Optimization results reveal that China’s national emission targets for electricity generation and methanol production can be achieved through carbon trading in the context of sectorial integration provided by energy-chemical nexus.

Keywords energy-chemical nexus, cap-and-trade carbon scheme, decentralized optimization, market mechanism