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From energy consumption control to carbon emission control in fossil and renewable energy rich regions: A general equilibrium analysis of Inner Mongolia

Author

Listed:
  • Huang, Qiushi
  • Geng, Yong
  • Yu, Zhongjue

Abstract

China has proposed to shift from energy consumption control to carbon emission control. However, little attention has been paid to its impact on Fossil and Renewable Energy-rich Regions (FRERs). This study employs a Computable General Equilibrium (CGE) model to evaluate the impacts of such a transition policy in Inner Mongolia – a typical FRER. Several scenarios are established to implement a nationwide Emissions Trading System (ETS) and target control policies on energy consumption and carbon emissions. The results show that promoting low carbon transition through ETS would help Inner Mongolia peak its carbon emission before 2030 and promote GDP, with a maximum 0.19 % rise in 2030. The target control policies would distort the optimal allocation of abatement burdens, leading to economic losses which would be more obvious under the context of carbon emissions control. These findings offer critical insights for policymakers to coordinate national and subnational carbon abatement policies and promote low carbon transition.

Suggested Citation

  • Huang, Qiushi & Geng, Yong & Yu, Zhongjue, 2025. "From energy consumption control to carbon emission control in fossil and renewable energy rich regions: A general equilibrium analysis of Inner Mongolia," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 188-198.
    • Handle: RePEc:eee:streco:v:75:y:2025:i:c:p:188-198
    DOI: 10.1016/j.strueco.2025.07.007
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