Carbon Emission Reduction Efficiency Research Articles

Carbon emission reducing and financing strategies of capital-constrained supply chains using equity financing under different power structures

AbstractThis study considers a low-carbon supply chain model comprised of a capital-constrained manufacturer and a retailer under a cap-and-trade system. These two parties can choose from two financing modes: bank financing or mixed financing, in which the latter combines bank financing with equity financing. Two decision-making power structures are formulated, namely the Nash game model and the retailer-led Stackelberg game model. Subsequently, a comparative analysis of equilibrium outcomes for both parties within these power structures is performed, yielding the following insights: (1) In the bank financing mode, retailers find greater profitability in adopting dominance. When emission reduction efficiency is high, manufacturers obtain more profit within a Nash game context. However, when emission reduction efficiency is low, manufacturers accrue more profit in a Stackelberg game context. In the mixed financing mode without cap-and-trade regulations, supply chain participants do not express a preference for any specific game structure. (2) Without cap-and-trade regulation, in both the Nash and Stackelberg game models, the supply chain participants find more profitability in mixed financing when carbon emission reduction efficiency is high. Meanwhile, bank financing proves more profitable when the carbon emission reduction is low. Moreover, this study investigates the impact of wholesale and retail prices of low-carbon products on the financing strategies of the supply chain participants under different power structures and financing modes. Additionally, extended models are considered, including the manufacturer-led Stackelberg game structure and the capital-constrained manufacturer with a certain amount of initial capital.

Does digital inclusive finance promote carbon emission reduction of enterprises.

Can the information technology revolution lead to carbon emission reduction for firms? This study extends the limited evidence in the literature and investigate the role and mechanism of digital inclusive finance on enterprises' carbon emissions using panel data of 247 prefectural-level cities and 6019 industrial enterprises in China. Our findings indicate that digital inclusive finance can promote enterprise carbon emission reduction, and this effect remains significant after the instrumental variable estimation test. The effect has regional heterogeneity and the development of digital inclusive finance in the area east of Hu Huanyong line has a significant impact on reducing enterprise carbon emission. The role of digital inclusive finance is heterogeneous in enterprise ownership, with a remarkable effect in non-state-owned enterprises. Sub-dimension analysis indicates that the breadth of coverage, depth of use, and degree of digitalization of digital inclusive finance have differential effects on reducing enterprise carbon emissions. The stepwise regression method shows that the impact of digital inclusive finance on enterprise carbon emissions can be passed through effect of technological progress, environmental protection investment and financing constrain. This study has significant reference value for evaluating the impact of financial inclusion and policy implications in formulating differentiated strategies for achieving carbon emission reduction efficiency in enterprises.

Impacts of dual carbon emission reduction technology and technology spillovers of deterioration reduction on supply chain system's performances considering government incentives and contract design

Investments in carbon emission reduction and deterioration reduction are important aspects for the firms to construct a low-carbon supply chain systems of deteriorating products with the increasing preferences of customers for environmentally friendly and fresh products. In this study we develop a two-echelon supply chain system consists of one manufacturer and one retailer. The manufacturer implements dual carbon emission reduction technology to strengthen the carbon emission reduction efficiency under cap-and-trade regulation and both manufacturer and the retailer invest in deterioration reduction technology to reduce the deterioration and increase the stock level of the fresh items. To increase the demand, the retailer takes the responsibility of promoting the low-carbon and fresh products among the customers. Deterioration reduction technology spills over from the manufacturer to the retailer. Then a differential game model is formulated and the equilibrium strategies are analysed by Stackelberg differential game approach in long term scenario. Numerical analysis has been done to analyse the theoretical results more rigorously by MATLAB software and sensitivity of some major parameters on the demand and profits of the manufacturer and the retailer have also been done to obtain some managerial insights. The impacts of implementing dual carbon emissions reduction technology and the effects technology spillovers are discussed. The results show that when the manufacturer invests in dual carbon emission reduction technology over single reduction technology, it increases the emission reduction level and hence the environmental performance and also the demand and hence economic profits of the both the supply chain members. If the deterioration reduction technology spills over from the manufacturer to retailer, it increases the profit of the manufacturer but the retailer will be beneficial when his/her marginal profit will be high. In addition, we have incorporated government subsidy on manufacturer's emission reduction investment and a cost-sharing contract on the promotional effort of the retailer in our work and then found that joint impacts of them on the supply chain system. We have shown that these two incentives provide the pareto improved solution for the supply chain system and take the supply chain members to a win-win situation as economically and environmentally. The discussions of the results of this study can be beneficial for the industries which produced deteriorating products and emits high carbon during the production process in terms of taking optimal decisions. It also gives a lesson to the government how to inspired the practitioners towards developing a sustainable system.

Research on cooperative advertising strategies for dual channel supply chain of fresh agricultural products considering carbon reduction efficiency under retailer leadership.

With the development of low-carbon economy and the dominant position of retailers, through the establishment and comparison of three cooperative advertising models: model of supplier's independent advertising, model of supplier's independent advertising and model of retailer's and supplier's cooperative advertising, this paper studies the cooperative advertising decision-making of fresh agricultural products supply chain with two channels, and the demand of both channels is affected by the level of advertising investment, the proportion of advertising cost sharing and the efficiency of carbon emission reduction. The results show that when supplier and retailer adopt the two-way cooperative advertising mode, the demand and profit level of the two channels reach the optimal level. Numerical analysis shows that carbon emission reduction efficiency has an important impact on profits and market demand, which is closely related to cooperative advertising strategy.

How to Induce Multinational Firms’ Local Sourcing to Break Carbon Lock-in?

Carbon lock-in poses a significant challenge in developing countries such as India and China. To mitigate this issue, these countries can leverage mandatory carbon emission reduction mandates imposed by multinational firms (MNFs) on their domestic manufacturers, thereby spurring the latter's investment in carbon emission reduction. However, facing eco-conscious customers, MNFs might opt to source from carbon-neutral overseas manufacturers even at high import tariff costs. We therefore explore how a local government can adjust the tariff rate and/or the domestic manufacturer's carbon emission reduction efficiency to induce an MNF local sourcing. Our findings indicate that even if the MNF has sourced locally, the overall emissions can be effectively reduced only when the domestic manufacturer's efficiency in reducing carbon emissions surpasses a unique threshold. Regarding social welfare, our results demonstrate a hump-shaped relationship with import tariff rates when an overseas sourcing strategy is adopted. We identify a triple-win situation where the MNF's local sourcing harmonizes the MNF's profit-maximization goal, the local government's environment protection goal, and the social welfare maximization goal. This paper sheds light on the value of MNFs’ sustainability requirements and local sourcing strategy in curbing emissions and tackling the pervasive issue of carbon lock-in that plagues many developing countries.

The impact of green finance on total factor carbon emission reduction efficiency in China

Based on an analysis of the relationship between green finance and total factor carbon emission reduction efficiency, this article measures the levels of green finance and total factor carbon emission reduction efficiency in 30 provinces and cities in China. It also establishes a spatial Durbin model to quantitatively explore the impact of green finance on China’s total factor carbon emission reduction efficiency. The results indicate that currently, green finance and total factor carbon emission reduction efficiency in China follow a distribution pattern of high in the east, medium in the central region, and low in the west. The impact of green finance on total factor carbon emission reduction efficiency demonstrates a U-shaped relationship, and the spatial spillover effect between the two displays a similar U-shaped trend. The mechanism analysis demonstrates that green finance exerts a U-shaped influence on the efficiency of reducing total factor carbon emissions through the interplay of technological progress and technical efficiency enhancements. Other variables, such as research and development investment, comprehensive energy consumption, human capital, infrastructure construction, and government regulation, also have an impact on total factor carbon emission reduction efficiency. Therefore, it is recommended that regions strengthen their green finance initiatives, support efforts to carbon emission reduction, and contribute towards achieving the “dual-carbon” goal.

Evaluation and spatial convergence of carbon emission reduction efficiency in China's power industry: Based on a three-stage DEA model with game cross-efficiency

Reducing carbon emissions is essential for achieving sustainable development in China. In this study, we developed a framework for measuring carbon emission reduction considering both thermal power and clean energy generation perspectives. Subsequently, we constructed a three-stage data envelopment analysis (DEA) model with game cross-efficiency to eliminate the influence of external environmental factors, random factors, and regional competition. Thereafter, we calculated the carbon emission reduction efficiencies (CEREs) of the power industries of 30 provinces in China from 2010 to 2020. Based on this, we conducted temporal and spatial analyses of the carbon emission reduction amount (CERA), evaluated CERE, compared different DEA models, and assessed spatial convergence effects. The evaluation results of CERE across 30 provinces, cities, and autonomous regions in China showed that: (1) although China's CERA increased, substantial regional differences exist in the carbon emission reduction structure. (2) The overall average CERE ranged from 0.485 to 0.737. Since 2016, the highest CERE values have been observed in southwest China, followed by the eastern coastal and central regions, while the northwestern region experienced notable fluctuations. (3) The three-stage DEA model with game cross-efficiency, which eliminates the influence of competition and external environmental factors, can be used to accurately measure CERE. (4) CERE has a spatial convergence effect on China's power industry and is promoted by energy structure, upgrading of industrial structure and government interventions. These findings provide important insights for optimizing the carbon emissions reduction structure and improving CERE.

Analysis of influencing factors of industrial green and low-carbon transformation under the background of “double carbon”: evidence from Sichuan province, China

Introduction: Industrial green and low-carbon transformation is the key to improve economic development and necessary process to achieve the goal of the carbon peaking and carbon neutrality. Few studies have been done on the decomposition of carbon emission factors in industries and sub-industries and the impact of green and low-carbon transformation about carbon emission in each industry quantitatively. However, the study of industries and sub-industries can comprehensively analyze the development path of green and low-carbon transformation from a more detailed perspective, and provide scientific reasons for the optimization of industrial structure and energy structure.Methods: The extended Kaya identity for industrial carbon emission is constructed to obtain four factors influencing industrial carbon emission: economic output effect, industrial structure effect, energy intensity effect, carbon consumption intensity in this paper. Then, the LMDI decomposition method is combined with the above identity to innovatively obtain the contribution value of carbon emissions from the perspective of overall, industrial sector and tertiary industry. Then, based on the results of factor decomposition, a multi-index scenario prediction model is constructed. On this basis, the extreme learning machine model optimized by particle swarm optimization (PSO-ELM) was used to predict the influence of the changes in the driving factors on the reduction of industrial carbon emissions. By setting the baseline and industrial green and low-carbon transformation scenarios, it is predicted that industrial carbon emission in Sichuan Province.Results and discussion: (1) Economic output effect always promotes the growth of industrial carbon emissions, and with the adjustment of industrial structure and energy structure, the other three factors begin to restrain the growth of carbon emissions. (2) Scenario prediction shows that without considering the economic costs of transformation, improving carbon emission reduction efficiency can be obtained through accelerating the rate of change of industrial structure of the secondary and tertiary industries, increasing the proportion of energy intensity reduction, and strengthening the proportion of non-fossil energy use.

Technical innovation of Autoclaved Aerated Concrete preparation from Desulfurization Wastewater and Sludge and its Life Cycle Assessment

ABSTRACT The article presents an innovative technique for the production of autoclaved-aerated concrete using desulfurization wastewater. The experiments were conducted to explore the optimal formula that meets the requirements of high compressive strength(≥5MPa) and low oven-dry density (≤600 kg m−3). Combined with specific production cases, the environmental assessment within the scope of the total life cycle assessment and circular economy assessment were carried out. Using compressive strength and maximum dry density as indicators, the optimal formulation was found to be 73%:16%:11%:30%:45% for fly ash: cement: lime: desulfurization wastewater: recycled water (process water). And the optimum ratio was 72%: 14%: 12%: 45%: 30% for fly ash: cement: lime: nanofiltration water: recycled water. The life cycle assessment contains a total life-cycle inventory and willing to pay was 61.1CNY. In addition, the GWP = 144.83 kg per cubic meter of autoclaved aerated concrete, the carbon emission reduction efficiency is 72.4%, the water saving is 0.195CNY for one ton of water, and the water saving rate is 40%. The technology is also a low-cost solution for clean production and circular economy model, promoting green and low-carbon development and meeting the requirements of “waste-free cities” popular worldwide.

The impact of the digital economy on inter-city carbon transfer in China using the life cycle assessment model

The haven paradise hypothesis has been widely supported in the international carbon transfer, but there is still a lack of inter-city evidence. The emergence of the digital economy in recent years has introduced unprecedented opportunities and challenges for carbon emissions reduction and carbon transfer. As the world’s largest carbon emitter and a major player in the digital economy, exploring whether the pollution haven hypothesis exists among cities in China and how the digital economy affects inter-city carbon transfer is crucial for countries to optimize their domestic carbon reduction structures. To this end, this paper employs the 2012 and 2015 Chinese Urban Household Survey data alongside input-output tables based on the life cycle assessment method to quantify the inter-city carbon transfer. In addition, the impact and mechanisms of the digital economy on inter-city carbon transfer are explored using the two-way fixed effects model. The results show that 54% of Chinese cities’ carbon emissions come from outside, with third-tier cities bearing high carbon transfer pressures, indicating the presence of the pollution haven hypothesis. The digital economy exacerbates inter-city carbon transfer by promoting market integration and facilitating industrial transfer, and it mainly promotes the transfer of high-intensity carbon emissions to third-tier cities. Considering carbon emission reduction targets, mandatory environmental regulations have strengthened the effect of the digital economy on carbon transfer. Therefore, the Chinese government needs to properly address carbon transfer by improving the collaborative carbon reduction system, enhancing carbon emission reduction efficiency, and accelerating the equitable progress of the digital economy.

Optimization of the refurbishment of German single family homes based on construction era

This publication devises a method which formulates a national strategy for the renovation of single family houses by treating each era of initial construction independent of all the others, and applies a universally adoptable procedure to evaluate the cost efficiency of carbon emission reduction. A multi-objective optimization was conducted which varied the building envelope and energy systems while optimizing for annual cost and carbon emissions. The optimization was carried out in oemof.solph and PyGMO on typical German building stocks from 11 different construction eras between 1860 and 2020. The buildings were modeled in TEASER using TABULA building stock data. The results indicate that post-war era construction has the greatest improvement potential by saving over 16 tons of CO2/yr with respect to its business as usual case. The recommended solutions for each construction era have an investment cost to emission reduction ratio which is 25% better than those of the current efficiency subsidies.

Efficient CO2 separation by ionic liquid nanoconfined in ultra-thin TCOH@Pebax-1657 MMM

Global climate change has continued to intensify in recent years, and the low efficiency of carbon emission reduction has become an important issue for many countries. Membrane separation technology has gained popularity in CO2 capture due to its ease of operation, environmental friendliness, and smaller area, etc. Two-dimensional (2D) sheet materials are one of the most promising materials for membrane separation technology. MXene has been used for gas separation because of its advantages such as high aspect ratio, excellent flexibility, and rich functional group surface. However, the stacking of massive MXene nanosheets lead to gas transport channel obstruction, causing the gas permeance to decrease. Herein, the hydroxylation of MXene was treated to obtain alkaline MXene nanosheets (TCOH) in this work. The stabilised TCOH and Pebax-1657 were used to make a mixed matrix membrane (MMM), while 1-ethyl-3-methylimidazolyl acetate ([EMIm][AcO], IL) was nanoconfined in the 2D channel of ultra-thin TCOH@Pebax-1657 MMM to construct a novel composite membrane for efficient CO2 capture. The TCOH@Pebax-1657/IL membrane prepared in this experiment has high CO2 permeance and the selectivity of CO2/N2, CO2/CH4 at the IL concentration of 35 wt%. In addition, the film has shown excellent thermal stability and durability over long periods of testing. Since TCOH is rarely used in the field of gas separation, the study will provide fresh idea for the preparation of highly efficient CO2 capture membranes.

Optimal strategies for production plan and carbon emission reduction in a hydrogen supply chain under cap-and-trade policy

Hydrogen is now being seen as one of the most promising carbon-free and abundant energy sources on the path to net-zero emissions. However, high transportation, storage, and carbon emission costs in hydrogen supply chains are critical economic barriers that hinder the development of the hydrogen economy. Consequently, hydrogen refuelling stations have to face a trade-off between self-produced and purchased hydrogen quantities while considering transportation and storage costs. Furthermore, hydrogen manufacturers and refuelling stations have to make a trade-off between their hydrogen outputs and carbon emission reduction quantities under a cap-and-trade policy. We develop a differential game model that draws on and extends the literature on hydrogen supply chain design and operation to address this dual dilemma. Therein, state variables include the hydrogen retail price and carbon emission trading price, and control variables involve the hydrogen outputs and carbon emission reduction amounts of the hydrogen manufacturer and refuelling station. We use the feedback control technique to find optimal solutions and implement numerical simulations to validate solutions and the sensitivity of parameters. The results suggest that carbon emission reduction efficiency, hydrogen wholesale price, and carbon trading reference price significantly impact the optimal decisions of production plans and carbon emission reduction. This study may provide theoretical guidance for promoting hydrogen utilisation, cost reduction and low-carbon development.

The Impact of Science and Technology Innovation on Carbon Emission Reduction Efficiency--Based on the input-output perspective

Using 30 provinces, municipalities and autonomous regions in China from 2013 to 2019 as the research objects, the dynamic benefits of emerging technologies and high technology on reducing carbon emission reduction efficiency was analyzed from the input-output perspective using the DEA-Malmquist method and by calculating the Malmquist index. Tobit regression analysis was also used to further investigate the factors influencing the differences in carbon emission reduction efficiency between different provinces and cities. The findings show that: i) science and technology innovation has a significant positive effect on reducing carbon emissions, and factors such as R&D funding have a positive effect on efficiency; ii) the regional tertiary industry share positively moderates this effect, while the regional Internet development level negatively moderates this effect. Finally, based on the results of the empirical study, we analyze the reasons for the changes of carbon emission reduction efficiency in each region and propose management suggestions to promote the improvement of carbon emission reduction efficiency.

The Research on Decisions of Carbon Neutral Technology in A Retailer-led Green Supply Chain Based on Cost Reduction and Carbon Trading

In this paper, based on the concept of green supply chain management, we construct a two-level supply chain game model consisting of an upstream manufacturer and a downstream retailer, where the downstream retailer is the leader and the upstream manufacturer is the follower. In addition, the upstream manufacturer in this model invests in carbon-neutral technology innovations that reduce production costs, lower carbon emissions, and increase market demand for their products. Based on this game model, the optimal equilibrium outcome of the supply chain is solved, and the influences of the carbon-neutral sensitivity coefficient, the investment coefficient for carbon-neutral technology innovation, carbon emission reduction efficiency, and the carbon-neutral technology cost reduction efficiency on the operation decision of supply chain firms are examined. The results show that (1) the consumer carbon neutrality sensitivity factor has a positive impact on the carbon neutral strategy, product ordering, and performance of supply chain firms. (2) The investment factor of carbon-neutral technology innovation hurts the carbon-neutral decision, product ordering, and performance of supply chain firms, while the pricing strategy also has a positive correlation impact with the carbon-neutral sensitivity factor of consumers as the carbon-neutral technology innovation investment factor increases. (3) The cost reduction efficiency of carbon-neutral technologies promotes carbon-neutral decisions, product ordering, and performance of supply chain firms. However, the pricing strategy is also closely related to market size and correlates negatively. (4) The carbon emission reduction efficiency per unit product is positively correlated with the carbon neutral decision, product ordering, and performance of supply chain firms, while the pricing strategy is also linked to market size and has a negative correlation.

Collaborative emission reduction research on dual-pilot policies of the low-carbon city and smart city from the perspective of multiple innovations

This paper selects the panel data of 305 cities in China from 2009 to 2020 to conduct quasi-natural experiments with the low-carbon pilot city policy and smart pilot city policy in China, and establishes the multi-period difference-in-difference model and mediating effect model to explore the collaborative emission reduction path of the pilot city policies. The empirical results show that under the dual-pilot policy, the urban carbon emission reduction efficiency is significantly improved, and the efficiency is higher than that under the single-pilot policy. Dual-pilot policies of the low-carbon city and smart city can create a synergistic emission reduction effect by improving the level of urban digital innovation, market-oriented innovation, and industrial innovation. The carbon emission reduction effect of Dual-pilot policies has regional heterogeneity and is more obvious in the eastern cities in China. The research can provide theoretical support for the planning of pilot cities, which is conducive to the sustainable development of the low-carbon economy in China.

To Be or Not to Be? Strategic Analysis of Carbon Tax Guiding Manufacturers to Choose Low-Carbon Technology

This paper analyzes the environmental tax’s effect on manufacturers’ choice of low-carbon technology in competitive supply chains. The existing studies only consider a single oligopoly enterprise and ignore the competition between supply chains. Few papers study the manufacturer’s technology choice under the carbon tax policy in the competitive supply chains, especially investigating the factors influencing the technology choice, including the market volume, and technology carbon emission reduction efficiency because different industry sectors have their distinctive carbon emissions reduction efficiencies and facing the different market volume. The study adopts a game theoretical approach, including the three-level supply chain consisting of the regulator, the manufacturers, and the retailers. A high carbon tax does not always help firms choose low-carbon technology. However, the monotonous effect of the carbon tax on manufacturer technology selection is no longer valid if the market volume and the carbon-reducing efficiency are considered. When the market volume is large, the regulator can set a high carbon tax to induce the manufacturers to choose low-carbon technology. We identify cases where the manufacturers are caught in a prisoner’s dilemma. When the market volume is small, and the carbon-reducing efficiency is high, the competitive manufacturers adopt the common technology. However, if the regulator increases the carbon tax, the manufacturers acquire the differential technology strategic choice, which is the Pareto optimal. We also extend the base model to the imperfect substitutable Cournot model and the Bertrand model to check the robustness and find our main results still hold in these extensions.

Carbon Reduction of the Three-Year Air Pollution Control Plan under the LEAP Model Using a GREAT Tool in Panzhihua, China.

In the context of global warming and climate change, various international communities have set different reduction targets for carbon emissions. In 2020, China proposed that CO2 emissions will peak by 2030 and reached a critical period in which carbon reduction is a key strategic direction. Sichuan Academy of Environmental Sciences published the "Panzhihua Three-Year Iron Fist Gas Control Action Plan" in 2021. The measures implemented in the plan only address general considerations of conventional pollutants in the atmosphere. This study established the Panzhihua LEAP model based on the GREAT tool and built four simulation scenarios, including pollutant treatment upgrade (PTU), traffic improvement (TI), boiler remediation (BR), and baseline scenarios for industrial sources, mobile sources, and industrial boilers in policy implementation. It provided a supportive basis for the development of environmental protection measures in Sichuan province to increase the efficiency of carbon emission reduction. The quantitative analysis of the simulation results for the five years from 2020 to 2024 was conducted to discuss the intrinsic links between carbon emissions and energy consumption, market storage, and demand under different scenarios. It concluded that the BR and TI scenarios benefit carbon reduction, while the PTU scenario negatively impacts it. This study provided recommendations for analyzing the carbon footprint at a city-wide level, quantifying the relationship between the implementation of relevant environmental measures and carbon emissions, which are available for policy development that incorporates carbon reduction considerations and offers relevant support for future research.

Information sharing and sales format strategy under platform economy and cap-and-trade

We develop a low-carbon supply chain including an online retail platform and a manufacturer, taking into account cap-and-trade mechanism. The online retail platform withholding the forecasting demand information chooses whether to share it or not and chooses the reseller format or the agency sales format. The manufacturer produces the low-carbon product and decides the carbon emission reduction level. Therefore, we establish two scenarios (non-information sharing; information sharing) in the reseller format model and the agency sales format model, respectively. Firstly, we derive the members’ equilibrium decisions and explore the online retail platform’s information sharing strategy. We find that the carbon emission reduction efficiency and sales format play important roles in information sharing strategy. Then, we examine the effects of information sharing strategy on carbon emission, consumer surplus, and social welfare. We find that sharing information is always beneficial to the environment, and may create more positive social value. Finally, we investigate sales format strategy and find that it depends on the carbon emission reduction cost.

Exploring the influencing factors of carbon neutralization in Chinese manufacturing enterprises.

One of the key issues facing the government in achieving carbon neutrality is what methods can be used to effectively reduce carbon emissions. Taking manufacturing enterprises as an example, this paper studies the carbon emission reduction effects of green technology innovation subsidy (GIS), carbon tax (CT), and carbon emission trading (CET). Under the background of social welfare and carbon emission reduction efficiency, we get the results of optimal carbon emission reduction measures in different environments. The results are as follows: (1) In the initial and mature stage of green technology innovation, GIS is the best choice to improve the degree of green manufacturing and maximize social welfare. CT and CET are the best choice to obtain the highest SE (carbon emission reduction efficiency). (2) In the transitional stage, CET and CT can promote the maturity of green technology. However, with the maturity of green technology, the promotion of green technology has weakened. CT is the best choice to achieve the highest SE. (3) When the carbon tax or carbon trading price is at a high or low level, raising the tax rate or carbon trading price can increase the income of enterprises. Therefore, the government should take measures according to the objectives of different stages. When the goal is to maximize social benefits, GIS is the best choice in the initial stage and transition stage, and CET or CT is the best choice in the transition stage. In the initial stage and fertilization stage, when the highest SE, CT, or CET is the best choice, while in the transition stage, CT is the best choice.