Allowance price and distributional effects under a personal carbon trading scheme

作者：Li Jun; Fan Jin^*; Zhao Dingtao; Wang Shanyong

来源：Journal of Cleaner Production, 2015, 103: 319-329.

DOI：10.1016/j.jclepro.2014.08.081

• Personal carbon trading
• Energy consumption
• Welfare change
• Allowance price
• Emission rate

Personal Carbon Trading (PCT) is a downstream cap-and-trade scheme to reduce carbon emissions from the household sector. In comparison to an upstream carbon trading scheme, PCT is a progressive scheme in which the poorer consumers are mostly 'winners', as their levels of emissions are generally lower. This paper investigates the equilibrium pride for allowances and distributional effects under a PCT scheme. First, we propose an equilibrium model for PCT from which we derive an equilibrium price for allowances. Second, a consumer surplus analysis is conducted to examine the welfare changes caused by the PCT scheme. Generally, we find that the PCT scheme is progressive and can provide a buffer between the energy and allowance price. Based on these results, the implications are discussed and suggestions for a future study are provided.

• 出版日期2015-9-15
• 单位中国科学技术大学