Climate change mitigation in energy-dependent regions—A carbon tax-based cross-system bi-layer model with equilibrium-optimization superposition effects

Abstract

Solving the dilemma caused by the competing goals of low-carbon development and mitigating climate change has become a topic of great concern. However, previous studies have not fully characterized the mutual feedback mechanisms between macro-socioeconomic systems and micro-energy systems in response to carbon taxation. Based on a top-down computable general equilibrium model and a bottom-up optimization model, we constructed a carbon tax-based cross-system bi-layer model (CG-EM) that includes equilibrium-optimization superposition effects. The feasibility and effectiveness of carbon taxes are considered for Shanxi Province, China, a typical energy-dependent region. (1) The findings of this study were in contrast to the general assumption that carbon taxes negatively impact socioeconomic structures. (2) A reasonable carbon tax can promote the stability of an energy network, synergistically mitigate carbon and air pollutants, and optimize production efficiency and the structure of the energy system. (3) Based on an energy–water–carbon nexus mechanism, water scarcity and uneven spatio-temporal energy allocation can be alleviated. This study contributes to the theory of climate change mitigation by analyzing the effects and specific implementation pathways of carbon taxes.