Carbon neutral sustainability and green development during energy consumption

Abstract

Carbon emission is one of the major problems during energy consumption. Many countries are trying to reduce it with a focus on carbon neutrality. Bridging this gap, we considered energy consumption in the monopoly market. In this research, the CO2 emissions problem has been solved considering the trilogy of carbon neutrality decisions. A mathematical model was developed based on the monopoly market. After that, this mathematical model was incorporated into the simulation model. The design of the experimental method was performed to achieve the optimal decision for the carbon-neutral trilogy. We found that Green innovation fund on carbon-based energy consumption (GIFCBER), CO2 emission tax on carbon-based energy consumption (TECBER), and Emission cap on carbon-based energy consumption (ECBER) are useful to reduce CO2 emissions to move towards the goal of carbon neutrality in a monopoly market. ECBER allows a manufacturer to produce more as compared to GIFCBER and TECBER. But, the TECBER strategy will enable manufacturers to produce fewer goods than the ECBER strategy. This research contributes as a reference and inspiration to achieve carbon neutrality during energy consumption. It helps the government's policymakers find the optimal levels and decisions of carbon neutrality factors to decrease CO2 emissions. Moreover, it allows manufacturers to maximize profit and create a clean environment.