Abstract
With increasing downstream carbon emissions, the implementation of a personal carbon trading scheme is urgently required. In order to facilitate the progress, government departments are supposed to adopt a motivating or punitive policy to make guidance for downstream carbon emissions reduction. This study determined and verified the evolutionarily stable strategies (ESSs) of government departments and individuals whose carbon emissions exceeded the initial carbon allowance (CEEICA individuals) by using the evolutionary game and numerical simulation methods, respectively. The findings show that the ESS of government departments is always a punitive policy during the variation of strategies of CEEICA individuals. The ESS of CEEICA individuals is an active plan when the added cost (the difference between emissions reduction cost and trading earning) is less than the carbon tax; otherwise, it is a passive plan. Furthermore, the rate of convergence can be significantly influenced by the probabilistic distances between initial strategies and the ESSs. On the basis of these findings, this study suggested implementing a “punishment first, motivation-supplemented” policy, and developing a stable operational mechanism for a personal carbon trading market.
Highlights
On November 4, 2016, the Paris Agreement became legally effective as the first global agreement regarding the mitigation of climate change by nearly 200 countries and regions, where it indicated that low-carbon development, climatic adaptation, and sustainable development are the global consensus [1,2]
The implementation of a personal carbon trading scheme can potentially contribute to reducing downstream carbon emissions, but the original intention is to effectively make guidance for individuals to live in a low-carbon lifestyle [37], CEEICA individuals are expected to adopt an active plan
The evolutionarily stable strategies (ESSs) of government departments is a punitive policy, which indicates that the carbon tax t per unit of carbon emissions are collected as the actual carbon emissions of CEEICA individuals is more than the initial carbon allowance
Summary
On November 4, 2016, the Paris Agreement became legally effective as the first global agreement regarding the mitigation of climate change by nearly 200 countries and regions, where it indicated that low-carbon development, climatic adaptation, and sustainable development are the global consensus [1,2]. Numerous countries (e.g., European Union, Australia, Canada, Japan, and China) made commitments to reduce greenhouse gas emissions and to mitigate climate change in the Paris. In order to meet the targets in the Paris Agreement, many active measures have been taken by most countries. It should be noted that the European Union, Australia, New Zealand, China, Korea, and some other countries have established carbon trading markets to reduce carbon emissions [5,6], and carbon trading schemes have become an important measure for reducing carbon emissions, but the existing carbon trading markets all focus on upstream sectors and corresponding government policies.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Environmental Research and Public Health
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
