Energy transition: Cap-and-trade and carbon capture and storage for achieving net-zero emissions with sustainable insurance
學年 112
學期 2
出版（發表）日期 2024-07-20
作品名稱 Energy transition: Cap-and-trade and carbon capture and storage for achieving net-zero emissions with sustainable insurance
作品名稱（其他語言）
著者 Shi Chen, Y. Li, J. H. Lin and C. H. Chang
單位
出版者
著錄名稱、卷期、頁數 Journal of Environmental Management 366 (2024) 121902
摘要 This paper introduces an energy transition model featuring a carbon-intensive manufacturer that adopts sustainable insurance, participates in a cap-and-trade scheme, and implements carbon capture and storage (CCS) transit, all aimed at achieving the net-zero carbon emission target. The model utilizes a down-and-out call (DOC) approach to evaluate the manufacturer’s equity, considering the bankruptcy risk prior to maturity due to carbon intensity. The equity of the life insurer providing funds is assessed using a capped DOC method to address the capped credit risk from the manufacturer. The findings reveal that increased adoption of CCS transit diminishes manufacturer equity, heightens default risk, and reduces insurer equity, with these effects exacerbated by advanced CCS technology and stringent cap-and-trade caps. Both stringent cap-and-trade schemes and rapid advancements in CCS transit practices, particularly with the use of advanced CCS technology, deviate from the net-zero target. A critical policy implication is the necessity for the precise calibration of cap-and-trade schemes and the pace of CCS transit adoption to ensure alignment with net-zero targets.
關鍵字 Cap-and-trade Carbon capture and storage Energy transition Net-zero emissions Sustainable insurance
語言 en
ISSN
期刊性質 國外
收錄於 SCI
產學合作
通訊作者
審稿制度 1
國別 GBR
公開徵稿
出版型式 ,電子版
SDGS 消除貧窮,尊嚴就業與經濟發展,負責任的消費與生產,夥伴關係