Research on a dynamics with bounded rationality for high-carbon and low-carbon energy economic system

Abstract

For the energy economic system, a dynamics with bounded rationality is built to describe a decision-making problem that decision-makers select high-carbon energy input and low-carbon energy investment to maximize the weighted utility of consumption and environmental quality in two adjacent periods. The technical level of low-carbon energy development, the weight coefficient, the rate of high-carbon energy pollution on the environment and the environmental quality self-repair coefficient are the major parameters in the model. Stability analysis and numerical simulation are mathematically done for this dynamics. The mathematical analysis shows that decision-makers' focusing on the long-term profits, improving the technology level of low-carbon energy development and reducing pollution rate of high-carbon energy are helpful for the sustainable development of the energy economic system.