Abstract
Radical low-carbon innovations have considerable technological and revolutionary influences. These key technologies considerably reduce carbon dioxide emissions. This study examines the role of carbon finance development in China’s radical low-carbon innovations. The paper identifies the key entities involved, constructs a network model of the interaction between carbon finance and radical low-carbon innovation, and uses multi-agent simulation modeling to analyze the associated influence mechanism. The results demonstrate that the carbon market can promote radical low-carbon innovation by (1) regulating the number of enterprises participating subject to carbon emission regulations, (2) regulating the number of market intermediaries, (3) establishing the market regulation level, and (4) setting the carbon intensity reduction level. The paper concludes that the Chinese government can formulate novel carbon market-related policies and regulations that, in a timely manner, influence the relationship between the carbon market and participating entities to promote the development of radical low-carbon technologies.
Highlights
The acceleration of industrialization is one of the primary factors exacerbating climate change
While several studies have discussed the positive effect of carbon finance on low-carbon technological innovation, no studies have revealed the mechanism of influence between the two or have presented systematic findings using the current research approach [34,35,36,37,38,39,40,41,42]
To understand the mechanism by which carbon finance influences radical low-carbon innovation, this study focuses on the complex network consisting of five entities, namely higher education and scientific research institutions and four trading entities
Summary
The acceleration of industrialization is one of the primary factors exacerbating climate change. The low-carbon industry in China has largely followed the development model of conventional manufacturing and has not adequately developed the top core technologies [6]. This indicates that China has still considerable scope for improvement in terms of low-carbon technology innovation capabilities. While several studies have discussed the positive effect of carbon finance on low-carbon technological innovation, no studies have revealed the mechanism of influence between the two or have presented systematic findings using the current research approach [34,35,36,37,38,39,40,41,42]. The study constructs a network model mapping the mechanism of interaction between carbon finance and radical low-carbon innovation. The paper demonstrates the mechanism of influence using a multi-agent simulation system
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