About the Journal
In Memory of Professor Jerzy Radecki
Ownership and Management Statement
Editorial Office
Editorial Board
Scope
Impact Factor
Indexed in...
Journal Impact Factor contributing items
Publication Frequency
Revenue Sources & Business Model
Contact
Subscription
Current issue
Online first
Instructions for Authors
Frequently Asked Questions
Editorial policies
Publication Policy Overview
Peer Review Policy
Research Ethics and Malpractice Policy
Plagiarism Policy
Conflict of Interest Policy
Open Access Policy
Instructions for Reviewers
Generative AI and AI-Assisted Technologies Policy
Advertising Policy
Direct Marketing & Manuscript Solicitation
Digital Archiving and Preservation Policy
CrossMark, Correction, and Retraction Policy
Archive
Editorial policies
Publication Policy Overview
Peer Review Policy
Research Ethics and Malpractice Policy
Plagiarism Policy
Conflict of Interest Policy
Open Access Policy
Instructions for Reviewers
Generative AI and AI-Assisted Technologies Policy
Advertising Policy
Direct Marketing & Manuscript Solicitation
Digital Archiving and Preservation Policy
CrossMark, Correction, and Retraction Policy
REVIEW PAPER
Research on the Development Status
and Key Issues of Green Electricity-Carbon
Market Coupling in China
1
State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing, 100038, China
2
School of Economics and Management, China University of Geosciences Beijing, 100083, Beijing, China
Submission date: 2024-08-16
Final revision date: 2024-10-30
Acceptance date: 2025-03-30
Online publication date: 2025-05-23
Corresponding author
Yan Li
School of Economics and Management, China University of Geosciences Beijing, 100083, Beijing, China
School of Economics and Management, China University of Geosciences Beijing, 100083, Beijing, China
KEYWORDS
green electricity marketcarbon marketcoupling relationshipprice transmissiongreen energy certificate market
TOPICS
ABSTRACT
To confront the urgent challenges of global climate change, achieving dual carbon goals
is now central to China’s economic and social development. In this context, integrating the electricity
and carbon markets is essential for promoting the green transformation of the energy system
and accelerating the transition to a low-carbon economy. This study examines the integration between
the green electricity market, green electricity certificate (GEC) market, and carbon market. It provides
an in-depth analysis of current coupling policies and practices, identifying issues like inefficient
price transmission and ineffective integration of environmental rights products. The study proposes
three recommendations for market coupling: improving price transmission mechanisms, enhancing
the integration of environmental rights products, and promoting international mutual recognition of
green electricity consumption. These recommendations aim to promote the coordinated development of
the green electricity and carbon markets, advancing the construction of a new electricity system.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
REFERENCES (51)
1.
LIAO X.C., WANG J., WANG T., LI M.C. Green Credit Guideline Influencing Enterprises' Green Transformation in China. Sustainability. 15 (15), 12094, 2023. https://doi.org/10.3390/su1515....
2.
XU P., XU Q.Q., BAO C.K. A Study on the Synergy of Renewable Energy Policies in Shandong Province: Based on the Coupling Coordination Model. Energies. 16 (9), 6759, 2023. https://doi.org/10.3390/en1619....
3.
National development and reform commission. Available online: https://www.ndrc.gov.cn/xwdt/t... (accessed on 23 August 2024) [In Chinese].
4.
XI J., WU G.W., LIN J., ZHANG J.R., SU P.Y. Reconsider policy allocation strategies: A review of environmental policy instruments and application of the CGE model. Journal of Environmental Management. 323 (52), 116176, 2022. https://doi.org/10.1016/j.jenv....
5.
LI J.F., HE X.T., NIU W., LIU X.N. Analysis of the joint trading of local green electricity certificates, carbon emissions rights, and electricity considering demand flexibility. International Journal of Electrical electricity & Energy Systems. 155, 109653, 2024. https://doi.org/10.1016/j.ijep....
6.
QIN Y. Role of European Carbon Market in electricity Sector Decarbonization. Journal of Global Energy Interconnection. 4 (1), 37, 2021.
7.
LI J.L., HU Y., CHI Y.Y., LIU D.N., YANG S.X., GAO Z.Y., CHEN Y.T. Analysis on the synergy between markets of electricity, carbon, and tradable green certificates in China. Energy. 302, 131808, 2024. https://doi.org/10.1016/j.ener....
8.
PINGKUO L., PENGBO G., CHEN Z. How to Promote Energy Transition with Market Design: A Review on China's Electric electricity Sector. Frontiers in Energy Research. 9, 709272, 2021. https://doi.org/10.3389/fenrg.....
9.
YU X.Y., DONG Z.J., ZHOU D.Q., SANG X.Z., CHANG C.T., HUANG X.H. Integration of tradable green certificates trading and carbon emissions trading: how will Chinese electricity industry do? Journal Of Cleaner Production. 279, 123485, 2021. https://doi.org/10.1016/j.jcle....
10.
FENG T.T., YANG Y.S., YANG Y.H. What will happen to the electricity supply structure and CO2 emissions reduction when TGC meets CET in the electricity market in China? Renewable and Sustainable Energy Reviews. 92, 121, 2018. https://doi.org/10.1016/j.rser....
11.
LI Y., FENG T.T., LIU L.L., ZHANG M.X. How do the electricity market and carbon market interact and achieve integrated development? A bibliometric-based review. Energy. 265, 126308, 2023. https://doi.org/10.1016/j.ener....
12.
LI Y.W., YANG X.X., DU E.S., LIU Y.L., ZHANG S.X., YANG C., ZHANG N., LIU C. A review on carbon emission accounting approaches for the electricity electricity industry. Applied Energy. 359, 122681, 2024. https://doi.org/10.1016/j.apen....
13.
MAI T., DENHOLM P., BROWN P., COLE W., HALE E., LAMERS P., MURPHY C., RUTH M., SERGI B., STEINBERG D., BALDWIN S.F. Perspective Getting to 100%: Six strategies for the challenging last 10%. Joule. 6 (9), 1981, 2022. https://doi.org/10.1016/j.joul....
14.
AMIRI M.M., AMELI M.T., STRBAC G., PUDJIANTO D., AMELI H. The Role of Flexibility in the Integrated Operation of Low-Carbon Gas and Electricity Systems: A Review. Energies. 17 (9), 2187, 2024. https://doi.org/10.3390/en1709....
15.
HUANG Y.S., HU J.J., YANG Y.Q., YANG L., LIU S.J. A Low-Carbon Generation Expansion Planning Model Considering Carbon Trading and Green Certificate Transaction Mechanisms. Polish Journal of Environmental Studies. 29 (2), 1169, 2020. https://doi.org/10.15244/pjoes....
16.
HUA Y.F., DONG F. China's Carbon Market Development and Carbon Market Connection: A Literature Review? Energies. 12 (9), 1663, 2019. https://doi.org/10.3390/en1209....
17.
HAO X.Y., SUN W., ZHANG X.L. How does a scarcer allowance remake the carbon market? An evolutionary game analysis from the perspective of stakeholders. Energy. 280, 128150, 2023. https://doi.org/10.1016/j.ener....
18.
KIM C., PARK H. An Investigation into the Impact of Limiting Carbon Emissions on the Korean electricity System and the Electricity Market. Journal of Electrical Engineering and Technology. 12 (3), 1038, 2017. https://doi.org/10.5370/JEET.2....
19.
CHENG Y.S., CHUNG M.K., TSANG K.P. Electricity Market Reforms for Energy Transition: Lessons from China. Energies. 16 (2), 905, 2023. https://doi.org/10.3390/en1602....
20.
FOROULI A., BAKIRTZIS E.A., PAPAZOGLOU G., OUREILIDIS K., GKOUNTIS V., CANDIDO L., FERRER E.D., BISKAS P. Assessment of Demand Side Flexibility in European Electricity Markets: A Country Level Review. Energies. 14 (8), 2324. 2021. https://doi.org/10.3390/en1408....
21.
DENG S.S., XIAO D.L., LIANG Z.P., CHEN J.R., HUANG Y.X., CHEN H.Y. Information gap decision theory-based optimization of joint decision making for electricity producers participating in carbon and electricity markets. Energy Reports. 9 (11), 74, 2023. https://doi.org/10.1016/j.egyr....
22.
MENG M., WANG L.X., CHEN Q. Quota Allocation for Carbon Emissions in China's Electric electricity Industry Based Upon the Fairness Principle. Energies. 11 (9), 2256, 2018. https://doi.org/10.3390/en1109....
23.
WANG H.B., ZHENG T.H., SUN W.Q., KHAN M.Q. Research on the pricing strategy of park electric vehicle agent considering carbon trading. Applied Energy. 340, 121017. 2023. https://doi.org/10.1016/j.apen....
24.
GHORBANI Y., ZHANG S.E., NWAILA G.T., BOURDEAU J.E., ROSE D.H. Embracing a diverse approach to a globally inclusive green energy transition: Moving beyond decarbonisation and recognising realistic carbon reduction strategies. Journal of Cleaner Production. 434, 140414, 2024. https://doi.org/10.1016/j.jcle....
25.
Foresight Technology Institute. Available online: https://bg.qianzhan.com/report... (accessed on 9 December 2023).
26.
ANIKA O.C., NNABUIFE S.G., BELLO A., OKOROAFOR E.R., KUANG B., VILLA R. Prospects of low and zero-carbon renewable fuels in 1.5-degree net zero emission actualisation by 2050: A critical review. Carbon Capture Science & Technology. 5, 100072, 2022. https://doi.org/10.1016/j.ccst....
27.
LI W.W., LIANG C., DONG X.Y., LI Y.X., LI S.D. Analysis of the Impact of Green Electricity and GEC Trading on Carbon Emission Factors of Electricity. Value Engineering. 42 (32), 2023.
28.
XU S.Q., XU Q. Optimal pricing decision of tradable green certificate for renewable energy electricity based on carbon-electricity coupling. Journal of Cleaner Production. 410, 137111, 2023. https://doi.org/10.1016/j.jcle....
29.
National Development and Reform Commission. Available online: https://www.ndrc.gov.cn/xwdt/t... (accessed on 3 August 2023).
30.
HUANG G.R., SHANG N., LIANG Z.Y., ZHANG J.H., YU H.W., Research on the Linkage Mechanism Between Green electricity Consumption and the Carbon Market. electricity System Technology. 48 (2), 2024 [In Chinese].
31.
International Carbon Action Partnership (ICAP). Available online: https://icapcarbonaction.com/z... (accessed on 22 March 2023).
32.
LO AY. Carbon offsetting and renewable energy development. Geographical Research. 61 (2), 158, 2023. https://doi.org/10.1111/1745-5....
33.
CHRYSIKOPOULOS S.K., CHOUNTALAS P.T., GEORGAKELLOS D.A., LAGODIMOS A.G. Decarbonization in the Oil and Gas Sector: The Role of electricity Purchase Agreements and Renewable Energy Certificates. Sustainability. 16 (15), 6339, 2024. https://doi.org/10.3390/su1615....
34.
BROWN T., SCHLACHTBERGER D., KIES A., SCHRAMM S., GREINER M., Synergies of sector coupling and transmission reinforcement in a costoptimised, highly renewable European energy system. Energy. 160, 720, 2018. https://doi.org/10.1016/j.ener....
35.
ZHU K., VICTORIA M., BROWN T., ANDRESEN G.B., GREINER M. Impact of CO2 prices on the design of a highly decarbonized coupled electricity and heating system in Europe. Applied Energy. 236, 622, 2019. https://doi.org/10.1016/j.apen....
36.
PIETZCKER R.C., OSORIO S., RODRIGUES R. Tightening EU ETS targets in line with the European Green Deal: Impacts on the decarbonization of the EU electricity sector. Applied Energy. 293, 116914, 2021. https://doi.org/10.1016/j.apen....
37.
GEA-BERMÚDEZ J., JENSEN I.G., MÜNSTER M., KOIVISTO M., KIRKERUD J.G., CHEN Y., RAVN H. The role of sector coupling in the green transition: A least-cost energy system development in Northern-central Europe towards 2050. Applied Energy. 289, 116685, 2021. https://doi.org/10.1016/j.apen....
38.
XU Q.F., QIAO S.B., ZHOU H.J., LUO R.J., MA X.Y., GONG J.R., Mechanism design and consumption certification of differentiated green electricity trading: A Zhejiang experience. Frontiers in Energy Research. 10, 967290, 2022. https://doi.org/10.3389/fenrg.....
39.
WANG H.R., FENG T.T., ZHONG C. Effectiveness of CO2 cost pass-through to electricity prices under "electricity- carbon" market coupling in China. Energy. 266, 126387, 2023. https://doi.org/10.1016/j.ener....
40.
WANG N., CAO Y.S., LIU Z., CHEN S.R., ZHOU Y., FENG D.H. Overview of carbon price transmission mechanisms in the electricity industry. 2022 IEEE/IAS Industrial and Commercial electricity System Asia (I&CPS Asia), IEEE. 2022. https://doi.org/10.1109/ICPSAs....
41.
CHANG X., WU Z.Y., WANG J.T., ZHANG X.Y., ZHOU M., YU T., WANG Y.Y. The coupling effect of carbon emission trading and tradable green certificates under electricity marketization in China. Renewable and Sustainable Energy Reviews. 187, 113750, 2023. https://doi.org/10.1016/j.rser....
42.
China City News. Available online: https://baijiahao.baidu.com/s?... (accessed on 22 February 2024).
43.
HUANG G.R., CHEN Z., SHANG N., HU X.Y., WANG C., WEN H., LIU Z.L. Do Tradable Green Certificates Promote Regional Carbon Emissions Reduction for Sustainable Development? Evidence from China. Sustainability. 16, 7335, 2024. https://doi.org/10.3390/su1617....
44.
SHI Z.Y. Work Route of Standardization and Certification of Green electricity Consumption. Standardization Research. 89 (12), 2023.
45.
LIN B.Q., HUANG C.C. Analysis of emission reduction effects of carbon trading: Market mechanism or government intervention? Sustainable Production and Consumption. 33, 28, 2022. https://doi.org/10.1016/j.spc.....
46.
KARAKOSTA O., PETROPOULOU D. The EU electricity market: Renewables targets, Tradable Green Certificates and electricity trade. Energy Economics. 111, 106034, 2022. https://doi.org/10.1016/j.enec....
47.
SHANG N., CHEN Z., LENG Y. Mutual Recognition Mechanism and Key Technologies of Typical Environmental Interest Products in electricity and Carbon Markets. Proceedings of the CSEE. 44 (7), 2558, 2024 [In Chinese].
48.
MA G.S., DUAN M.S. Potential risks of double-counting carbon emission reductions in environmental rights trading and countermeasures. Climate Change Research. 20 (1), 85, 2024 [In Chinese].
49.
LIU G.Y., WANG J.Y., TANG Y.C., WANG D. Evolution Process of Research Directions and Application Requirements of Electricity Carbon Emission Factors. electricity System Technology. 48 (1), 12, 2024 [In Chinese].
50.
CHEN Z., HE G.S., SHANG N. Improved Calculation Method of electricity Grid Carbon Emission Factor for Carbon Peak and Carbon Neutrality Goals. Southern Electricity System Technology. 18 (1), 153, 2024 [In Chinese].
51.
LIU T.W., BIAN X.Y., WU S., LIANG S.Q., XU Q., WEI X.C. Overview and prospect of carbon emission accounting in electric electricity systems. Electricity System Protection and Control. 52 (4), 176, 2024 [In Chinese].
Share
RELATED ARTICLE
| eISSN: | 2083-5906 |
| ISSN: | 1230-1485 |
We process personal data collected when visiting the website. The function of obtaining information about users and their behavior is carried out by voluntarily entered information in forms and saving cookies in end devices. Data, including cookies, are used to provide services, improve the user experience and to analyze the traffic in accordance with the Privacy policy. Data are also collected and processed by Google Analytics tool (more).
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
