Low-carbon development mechanism of energy industry from the perspective of carbon neutralization

In order to cope with the climate problem of global warming and respond to the call of the United Nations to reduce carbon emissions, China has put the goals of carbon peaking in 2030 and carbon neutrality in 2060 forward and has promoted the transformation and upgrading of the economic development mode and the green, low-carbon development path. In international practice, various countries have widely adopted the carbon trading market and tax policy as effective carbon emission reduction mechanisms and tools. In 2012, China implemented a carbon trading pilot project and established a national unified carbon trading market in 2021 based on accumulated experience, but the carbon tax has not yet been introduced. According to the international carbon tax practice and the current situation in China, the introduction of the carbon tax is conducive to the establishment of a sound carbon emission reduction system and the promotion of green and low-carbon development from the macro-control level. In this paper, we analyzed the necessity and theoretical research of carbon tax policy in China and explored the feasibility of a carbon tax in China by combining the internationally advanced carbon tax practice. By establishing a CGE model at the carbon-tax level and using the social accounting matrix (SAM) as the database, we simulated the impact of implementing carbon tax policies under different carbon tax prices on China’s environmental and economic benefits and whether the double-dividend effect of a carbon tax can be effectively realized. The results show that the carbon tax will help reduce carbon emissions and significantly affect carbon reduction. However, in the short term, it has a negative effect on economic development. Accordingly, it is suggested that a scientific carbon tax system should be established according to national conditions, and a carbon tax should be introduced at a lower carbon tax price. The carbon tax should be supplemented by carbon tax subsidies to ensure effective carbon emission reduction so as to alleviate the inhibiting effect on economic development. At the same time, the compound carbon emission reduction mechanism of carbon trading and tax should be improved to lay the institutional foundation for the early realization of the carbon neutrality target.

Energy Supply and Decarbonisation Beyond Brexit: Politics and Policy

As global climate change accelerates, countries worldwide are adopting measures to curb carbon emissions and promote sustainable development. China, a major emitter, has actively implemented carbon reduction policies, with carbon tax and carbon trading markets as key mechanisms. The carbon tax raises the cost of emissions, encouraging enterprises to reduce their emissions, while the carbon trading market enhances the allocation of emission resources through market-driven pricing mechanisms, thereby improving overall reduction efficiency. This study aims to explore the synergistic effect between Chinas carbon tax and carbon trading market, analyzing their interaction in promoting carbon emission reduction and assessing their influence across different industries and regions. Based on a review of relevant literature and data from government carbon emissions statistics, the study examines the synergy between carbon tax and the carbon trading market. The results indicate that the implementation of the carbon tax increases the cost of carbon emissions for enterprises, thus prompting them to adopt more proactive reduction measures while providing stable demand for the carbon trading market. Besides, the carbon trading market improves overall emission reduction efficiency by optimizing the market-driven allocation of carbon allowances. After the carbon tax was implemented, corporate emissions dropped, market activity increased, and price fluctuations signaled emission reduction. In addition, it reveals that the synergistic effect of carbon tax and carbon trading market varies across different industries and regions, suggesting that policy adjustments should be tailored to specific circumstances.

How do we motivate farmers to adopt low-carbon production? Analysis of extrinsic incentives’ internalization

In the face of climate and environmental problems caused by carbon emissions, China is taking positive actions, such aspromoting the achievement of the emission peak of traditional energy sources, accelerating the optimization of industrial andenergy structures, promoting and improving the construction of the national carbon trading market, increasing investmentand scientific research work to develop new energy sources, and several other actions. The administrative approach plays animportant role in the development of Chinaʼs low-carbon economy. The carbon trading system also greatly promotes energyconservation and emission reduction, contributes to attracting investment in low-carbon technology and transforming theenergy structure and is becoming an important policy guarantee for Chinaʼs carbon emission reduction. However, at thesame time, Chinaʼs carbon trading market faces many practical challenges. For China, the task of reducing carbon emissionsthrough carbon trading alone is unrealistic. Chinaʼs current actions on carbon taxation are not broad enough to regulateemission reductions. With the implementation of carbon trading, there is a need to establish a carbon tax as a policy optionto further strengthen the regulation of emission reduction. The introduction of a carbon tax should consider the relationshipbetween economic and social development and carbon reduction and coordinate the relationship between the carbon tax andcarbon trading system on various aspects, including the field and object of taxation, tax rates, use of tax revenue and therelationship between the authorities regulating the two policies, to leverage their complementary roles.

Product line strategy and environmental impact oriented to carbon tax constraints

With the rapid development of economy, human activities have caused great impact on the ecological environment. Achieving peak carbon dioxide emissions, carbon neutrality has become the goal to be completed. Taking the new energy industry in the Yangtze River Delta region as the research subject, this paper explores the relationship between the development of new energy and social economy, scientifically accounts for and evaluates the emission reduction potential of the new energy industry, conducts coupling and coordinated development research on the new energy industry and the regional low-carbon economic integration development, and provides scientific suggestions for the realization of "peak carbon dioxide emissions, carbon neutrality". Focusing on the above purpose, this paper firstly synthesizes the literature, clarifies the relevant concepts of low-carbon economy and the evaluation indicators of the development level of new energy industry, and combs the interaction between the two, providing theoretical support for the subsequent analysis. Secondly, it constructs a multi-dimensional measurement index to explore the green new energy industry, selects the relevant data of three provinces and one city in the Yangtze River Delta region from 2011 to 2019, and uses the TOPSIS entropy method to quantify various indicators of the new energy industry. Then, the unit root test is carried out on the data of different indicators of the new energy industry to judge whether these variable data have stationarity, and then the strength and direction of the relationship between the variables of different indicators are judged through the co-integration test. At last, the PSTR model is applied to take economic growth as the conversion variable, to examine the nonlinear effect of explanatory variables such as economic growth on the development of new energy, to conduct empirical analysis and draw conclusions.

With the proposal of China’s “carbon peak, carbon neutral” strategy, the increasing awareness of low carbon production among consumers, and the government’s introduction of carbon trading mechanism and low carbon consumption subsidy policies, enterprises are facing good opportunities for development. However, how the government can reasonably formulate low carbon policies and how enterprises can implement optimal low-carbon production decisions are still key issues in China’s low-carbon transition development. In this context, this paper is based on the carbon trading mechanism and carbon consumption subsidies. In this context, based on the carbon trading mechanism, this paper focuses on green production and green consumption, considers the impact of low-carbon consumer preferences and government subsidies on enterprises’ low-carbon production decisions, and uses the optimal theory to study the optimal pricing strategy and the optimal carbon reduction strategy. The study shows that the increase in carbon price has a positive effect on the increase in enterprise profit; the increase of carbon emission has a negative effect on the increase of enterprise profit and the high carbon price will intensify this effect. In addition, changing the intensity of government subsidies to consumers will lead to the change of enterprise carbon emission strategy. The study of this paper provides a certain reference for the government to reasonably formulate carbon trading prices and consumer low-carbon subsidies. In addition, considering consumer low-carbon preferences is also conducive to promoting green production practices of enterprises, thus promoting the realization of the carbon neutral strategy.

To achieve the goal of "emission peak and carbon neutrality", it is particularly important to accelerate the transformation of low-carbon production as the construction industry of China’s major carbon emission. Considering the national industrial management system, this paper constructs a stochastic game model of supplier group’s production strategy in construction supply chain based on Moran process, analyzes the conditions for low-carbon emission strategy to fixate in supplier populations and become an evolutionary stable strategy, then, carries out numerical analysis on fixation probability and fixation times, and the influence of various factors on the evolution process is discussed, such as the initial willingness of suppliers to choose low-carbon emission strategy, the cost subsidy coefficient of government to low carbon suppliers, the reward and punishment of government and the credibility of suppliers. The results show that on the basis of vigorously promoting environmental protection, the government should implement a differentiated treatment policy through the establishment of carbon emissions standards, cost subsidies, incentives and punishment measures, and information disclosure systems to guide supplier groups to transformation into low-carbon production.

K Based on the balanced panel data of environmental pollutants, carbon dioxide emissions, and regional GDP for 16 cities in Anhui Province from 2007 to 2023, which are treated as endogenous variables, the PVAR model is employed to investigate the dynamic equilibrium relationship between pollution reduction, carbon reduction, and economic development in Anhui Province. The study finds that: ①There is a long-term inertia effect in Anhui's economic development, which has formed a sustained self-growth mechanism compared to pollution reduction and carbon reduction. ② The causal relationship between economic development and environmental pollutant control mainly manifests as an inhibitory effect of environmental pollutant emissions on economic development. The impact response of water pollutants and atmospheric pollutants on economic development follows an "inverted U-shaped" curve, and economic development has a long-term promoting effect on environmental pollutants. ③ The phased decoupling between economic growth and carbon emissions is insufficient, and the impact of carbon dioxide emissions on economic growth shows an "inverted V-shaped" positive response. ④ The coordinated emissions of economic growth and pollution reduction and carbon reduction exhibit a "first inhibitory, then promotive" effect. Economic growth will inhibit the effects of pollution reduction and carbon reduction in the short term, but will turn into a positive promotive effect as time goes by, gradually shifting the relationship towards synergy. To achieve the "win-win" goal of high-quality economic development and ecological environment protection, Anhui Province needs to fully leverage the "double dividend" effect of economic development on pollution reduction and carbon reduction, and build a green, low-carbon, and circular development system through industrial structure optimization, technological innovation empowerment, and policy mechanism coordination.

In order to achieve the emission peak and carbon neutrality ("30·60" goals), personal carbon trading may be included in China's carbon trading market in the future, based on the corporate-level carbon trading that is already in place. It will be an effective solution to reduce carbon emissions from the consumption side and can be used as a supplement to the corporate carbon trading mechanism and carbon tax. This study constructs a personal carbon trading system based on the fundamental realities of China, which includes four attributes: carbon quota acquisition, trading partner selection, low-carbon behavior offset mechanism, and value preservation mode. Through questionnaire survey and choice experiment, the logit model is used to analyze the influence of the four attributes upon the individual willingness to participate in personal carbon trading and the heterogeneity of the public on personal carbon trading in the context of carbon neutrality policy. The study found that the influence of the attributes on the willingness to participate was ranked as follows: carbon quota acquisition > value preservation mode > low-carbon behavior offset mechanism > trading partner selection. The level of knowledge about carbon neutrality and salary will have a significant positive impact on the attribute-level preference of personal carbon trading. Finally, suggestions are made for designing, applying, and promoting personal carbon trading mechanisms to improve the public's willingness to participate in personal carbon trading and perfect the construction of carbon trading systems at the consumption side. The take-home message of the study is that a well-established personal carbon trading mechanism is an effective solution for reducing greenhouse gas emissions.

Massive emission of carbon dioxide and supply and safe use of traditional fossil energy have become the most important and urgent problems for the sustainable development of human society. Starting in 2013, China began to gradually set up seven carbon trading pilot areas, for the purpose of controlling the emission of greenhouse gases like carbon dioxide and driving the sustainable development of energy with the help of the market mechanism of carbon trading. From the perspective of Chinese carbon trading market, this article conducts an in-depth analysis of the current situation of Chinese new energy industry in the carbon trading market and a correlation analysis of the influences of carbon trading market on the new energy industry. The results show that carbon trading market has a significant influence on Chinese new energy industry, as carbon trading market increases the demand for new energy and prompts enterprises to conduct industrial optimization and structural adjustment. On this basis, this article points out the problems existing in Chinese carbon trading market and new energy industry and proposes corresponding countermeasures and suggestions for their healthy development.

This study designs an Evolutionary Game Model (EGM) to analyze how Carbon Reduction (CR) responsibilities are shared between government entities, enterprises, and citizens during China’s Carbon Peaking (CP) and Carbon Neutrality (CN) targets. The research builds a three-player EGM to study how China manages CR obligations across its climate policy framework. The model reproduces the interactions between government agencies, businesses, and citizens while incorporating factors such as government intervention, corporate approaches, and public participation. The game system achieves its optimal outcome through the positive benefits of resident participation in CR combined with balanced costs or business advantages. Research findings show that organizations without government monitoring can adopt Low-Carbon Production (LCP) techniques while citizens become active participants in the development of Low-Carbon Societies (LCS). The research demonstrates that the government should broaden its scope from just economic regulation costs to take an active part in encouraging public involvement and responsibility in CR initiatives. The study results establish vital knowledge that helps policymakers create practical responsibility-sharing systems that unite governmental agencies with businesses and communities to achieve CR objectives for national and worldwide climate strategies.

To achieve the goals of carbon peak and carbon neutrality, the low-carbon transformation (LCT) of high-carbon firms is inevitable. We construct game models of a supply chain with different dominant types under a mixed carbon policy that embraces carbon cap-and-trade and carbon tax. Solving each dominant model, we derive the effective area and optimal threshold of the mixed carbon policy to guide LCT. We find that the selling price, market demand, and profit of the supply chain system are equal in different dominant models due to the mixed carbon policy, but when a company dominates the supply chain, its profit is higher than when it is a subordinate. In addition, the high-carbon manufacturers (HCM) will pursue LCT only when the sum of the carbon tax rates and carbon trading prices is within a certain threshold, and the subordinate HCM are more likely to be driven to pursue LCT. Therefore, the government should adopt a differentiated hybrid carbon policy, setting a high (low) carbon tax rate for the HCM in a dominant (subordinate) position.

Low carbon economy is the trend of world economic development with the Characteristics of low energy consumption,low pollution,low emission based on economic model,Low carbon economy is a great progress of human society after the agricultural civilization, industrial civilization. Low carbon production has a certain influence, when model building set, low carbon consumers, low carbon resource producers and government can be considered. In this paper, we use the endogenous growth model to build production function and utility function, By solving it, we concludes that when the government stable tax policy has been implemented, low carbon consumers have a unique optimal capital stock path, along this path it can promote the steady and optimal economic growth, we also discuss the tax policy influence on low carbon economic growth under the condition of market equilibrium, and get know how to adjust the tax rate to achieve the optimal low-carbon economic growth.