2023 Fiscal Year Research-status Report
Market-Based Emission Permits and Border Carbon Adjustments
| Project/Area Number |
23K12460
|
|---|
| Research Institution | Hitotsubashi University |
|---|
Principal Investigator |
Cheng Haitao 一橋大学, 社会科学高等研究院, 特任講師 (50906930)
|
|---|
| Project Period (FY) |
2023-04-01 – 2028-03-31
|
| Keywords | Emissions Trading / Border Carbon Adjustment / Pollution Haven / Carbon Leakage / Technology Transfer |
|---|
| Outline of Annual Research Achievements |
In this academic year, I have investigated the background of border carbon adjustments and completed the literature review.
I have also studied how the permit markets operate and how the permit prices are determined. A paper related to market-based emission permits has been published in an international referred journal. Specifically, I employed the footloose capital model to examine and compare how countries decide on their emission permits non-cooperatively when the permits are traded domestically and internationally in the presence of capital mobility. I found that even if two countries are symmetric and have the same permit prices under domestic emissions trading, they can benefit from international emissions trading. This finding holds regardless of capital mobility. I also found that allowing footloose capital increases each country's and global emissions under domestic emissions trading; however, it does not affect emissions under international emissions trading. Additionally, I found that the cooperative choices of emission permits are the same regardless of international mobility of emission permits and capital and are always lower than the non-cooperative ones.
|
| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
As has been planned, I completed preliminary research for this project.
I attended many conferences and workshops from which I received many useful comments and suggestions.
|
| Strategy for Future Research Activity |
In the next academic year, I will construct the basic model to describe the permit market and border carbon adjustments.
I will also explore how border carbon adjustments affect permit price, firms’ choices of environmental R&D and location.
|
| Causes of Carryover |
I planned to use the remained money to purchase a book. But it could not be delivered within this fiscal year. So I will purchase this book in the next fiscal year.
|
