Can energy storage get carbon quotas

Does a carbon quota policy affect CEI?

The authors found that the benchmarking quota policy is the preferred approach for enterprises investing in clean energy sources. Chen et al. (2022)further investigated the impact of the carbon quota policy on CEI under different market types.

What is a carbon quota policy?

The carbon quota policy mainly consists of a grandfathering quota policy and benchmarking quota policy, with a grandfathering quota policy using enterprises' past carbon emissions as the total carbon quotas (Zhang et al., 2015). For example, the grandfathering quota policy was used in the first phase of the EU, and has been used in Hubei, China.

How does carbon quota affect technology investment?

For example, Fan et al. (2023)investigated the effects of the carbon quota mechanism and carbon tax mechanisms on enterprises' carbon abatement technology investment. The authors found that, under the carbon quota policy, enterprises can flexibly adjust the quantity of production to increase profits, resulting in lower incentives for investment.

Can a carbon quota policy maximize consumer interests?

Thus, it is evident that neither carbon quota policy can optimally maximize the interests of the environment, consumers, and enterprises simultaneously. In balancing consumer interests, the profit of the EP, and environmental protection, the government needs to prioritize accordingly.

What happens if the government tightens carbon quotas?

When the government tightens carbon quotas, the EPs under the benchmarking quota policy adopt higher electricity prices, prompting consumers’ preferences for the grandfathering quota policy. Conversely, if the government sets loose unit-carbon-quotas, the consumer surplus is higher under the benchmarking quota policy.

Which quota policy emits more carbon dioxide?

As can be seen, when e0is relatively loose (e0=0.3(kg))and dis higher (d=1($/GW)), in comparison to the grandfathering quota policy, the EP emits more carbon dioxide under the benchmarking quota policy.