Research on Fossil Fuel Related Carbon Emissions Reduction Scheme Effects

There is a worldwide consensus that excessive anthropogenic carbon dioxide emissions will lead to global warming and other environmental problems. Supports from regulations and policies have gradually implemented in this area. As one of the most discussed policies, the carbon emissions trading schemes(CETS) has an advantage in its price-oriented and cost-saving characteristics. In this paper, we analyze and assess the CETS effect from static and dynamic perspectives by applying provincial panel data covering a period ranging from 2004 to 2017. The CETS policy has a significant constraining effect on both carbon emissions and primary energy consumption. Compared to the other two uncertainties, namely the energy price uncertainty and the technology uncertainty, the carbon permit price uncertainty has a relatively smooth impact on the economy, which is being pursued consistently by the policymakers.