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Can Carbon Trading Promote Low-Carbon Transformation of High Energy Consumption Enterprises?—The Case of China

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  • Peishu Chen

    (School of Mathematics and Big Data, Chaohu University, Chaohu 238000, China)

  • Yu He

    (School of Economics, Nanjing University of Finance and Economics, Nanjing 210023, China)

  • Kai Yue

    (School of Economics, Nanjing University of Finance and Economics, Nanjing 210023, China)

  • Guochang Fang

    (School of Economics, Nanjing University of Finance and Economics, Nanjing 210023, China)

Abstract

This paper explores the effect of carbon trading on low-carbon transformation of high energy consumption enterprises in China. Based on the mechanism of interaction and restriction among high energy consumption enterprises, carbon verification agencies and the government, a tripartite evolutionary game model is constructed. The three-dimensional dynamic system is built to analyze the behavior patterns of the three parties. The evolution path of the tripartite game is visualized, and the low-carbon transformation states of high energy consumption enterprises in different situations are described. The results show that the high energy consumption enterprises, verification organization and the government cannot reach the optimal game equilibrium (low-carbon transformation, verification and supervision) temporarily when seeking their own interests. The corresponding measures should be taken with different situations of the tripartite game. No matter what strategy the government chooses, the low-carbon transformation could be promoted by carbon trading through carbon verification mechanism.

Suggested Citation

  • Peishu Chen & Yu He & Kai Yue & Guochang Fang, 2023. "Can Carbon Trading Promote Low-Carbon Transformation of High Energy Consumption Enterprises?—The Case of China," Energies, MDPI, vol. 16(8), pages 1-18, April.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:8:p:3438-:d:1123171
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