Multi-Agents-Based Modeling and Simulation for Carbon Permits Trading in China: A Regional Development Perspective

Abstract

China has been actively taking actions to control carbon emissions and promoting development of a carbon market. However, there are many disadvantages in a carbon market, owing to various designs and policies still under trial and implementation. Adopting the multi-agents technique, we constructed a framework about national carbon market to estimate the effect of a different design of policy made on the GDP (Gross Domestic Product) and environment. In particular, national and regional abatement policies were analyzed in our study. The results showed the carbon-trading mechanism can effectively reduce carbon emissions and make a negative impact on GDP. National abatement can neither be too high nor too low for reducing carbon emissions and maintaining economic stability. For different regions, the central region was impacted the most by a carbon trading mechanism, and the east region was the opposite. Moreover, the “sweeping approach” policy should be replaced by a regional “discriminating policy” because the abatement requirement to the western region was low and to the eastern region was relatively high, which is more beneficial to China’s regional development.

Is Emissions Trading Scheme (ETS) an Effective Market-Incentivized Environmental Regulation Policy? Evidence from China’s Eight ETS Pilots

“…China’s carbon market has high prices, severe volatility, poor liquidity, and poor information transparency [ 5 ]. Measuring the efficiency of the carbon market provides important insights for market participants in formulating trading strategies based on carbon prices [ 6 ]. In addition, the efficiency of the carbon market has a significant impact on certain energy issues, such as power generation, energy consumption, and the development of new energy technologies [ 7 ].…”

Redesigning a cap-and-trade program for air emissions by agent-based modeling

“…Nonetheless, we will continue studying these problems to revise the model that can potentially contribute to evaluation of air quality management. Recently, many researchers have applied ABM methods to study issues of carbon trading [22,33,34], and Taiwan has begun planning carbon trading system. Furthermore, we can develop a model for analyzing the impacts of other environmental policies, particularly energy policy and greenhouse gas management policy.…”

Carbon Trading Mechanism, Low-Carbon E-Commerce Supply Chain and Sustainable Development

“…With carbon emission intensity as one of the control variables, the carbon trading mechanism affects both CER and economic growth, and the effect extent is diverse in different provinces [38]. Zheng et al [39] adopted a multi-agents technique and found by model simulation that the carbon trading mechanism harms the growth of GDP while reducing emission. It is recommended that in order to maintain economic stability, different regions need to set different emission restrictions.…”