Regional policy options for carbon peaking in the Yangtze River Delta under uncertainty

Abstract

The Yangtze River Delta (YRD) region plays a crucial role in achieving China's carbon peaking goal. However, due to uncertainties surrounding future economic growth, energy consumption, energy structure, and population, the attainment of carbon peaking in this region remains uncertain. To address this issue, this study utilized the generalized Divisia index method to analyze the driving factors of carbon emissions, including economy, energy, investment, and population. Subsequently, Monte Carlo simulations were combined with scenario analysis to dynamically explore the peak path of regional heterogeneity in the YRD from 2022 to 2035 under uncertain conditions. The findings highlighted that economic uncertainty has the most significant impact on carbon emissions. Furthermore, reducing energy intensity and promoting the transformation of the energy consumption structure contribute to carbon reduction. The study also revealed that the carbon peak in the YRD exhibits regional heterogeneity. According to the baseline scenario, carbon emissions in the YRD will not peak before 2035. However, under the low-carbon development scenario, the carbon emissions of Zhejiang and Shanghai will peak before 2030. Moreover, under the enhanced emission reduction (EE) scenario, carbon emissions in Jiangsu, Zhejiang, and Shanghai will peak before 2025, while Anhui will reach its peak before 2030. Collectively, the entire YRD region is forecasted to attain a carbon emissions peak of 2.29 billion tons by 2025 under the EE scenario. This study provides valuable insights into the carbon emission trajectories of the YRD region under uncertain conditions. The findings can be instrumental in formulating carbon peaking policies that account for regional heterogeneity.