The 3^rd ISETS Energy Transition Forum

 Climate Finance and Investment

21 May 2022, Wuhan China

May 21, the 3rd Energy Transition Forum of the International Society for Energy Transition Studies (ISETS) and Wen Lan Forum was held in Wuhan, China (online). This Forum was organized by ISETS and the School of Finance, Zhongnan University of Economics and Law.

The Forum attracted more than 150 participants from 30 Chinese and oversea universities and institutes, including the Chinese Academy of Sciences, University of Chinese Academy of Sciences, University of Technology Sydney, etc. Scholars had in-depth discussions on the theme of climate finance and investment.

Professor FAN Ying, dean of the School of Economics and Management, Beihang University, presented the keynote speech “Welfare analysis of quota mechanisms based on volume and intensity in carbon markets”.

FAN pointed out that the intensity-based quota allocation may reduce the welfare losses caused by market forces, which would bring more social welfare than the volume-based quota way, when the marginal cost of production in an enterprise with low emissions is not exceeding that in a firm with high emissions.

She further indicated that the intensity-based quota way can achieve higher consumer surplus, producer surplus and social fare than the quota way on volume in the context of equal total emission allowances, taking into account the Chinese steel industry. These findings bring forward crucial implications on the carbon market.

ISETS Forum is the main brand of ISETS open to global stakeholders and aims to provide a high-level dialogue and academic exchange platform for energy transition with global influences.