Author
Listed:
- Ning Yan
(Jiaxing Hengchuang Electric Power Design & Institute Co., Ltd., Jiaxing 314100, China)
- Shenhai Huang
(Jiaxing Hengchuang Electric Power Design & Institute Co., Ltd., Jiaxing 314100, China)
- Yan Chen
(Jiaxing Hengchuang Electric Power Design & Institute Co., Ltd., Jiaxing 314100, China)
- Daini Zhang
(Jiaxing Hengchuang Electric Power Design & Institute Co., Ltd., Jiaxing 314100, China)
- Qin Xu
(School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710049, China)
- Xiangyi Yang
(School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710049, China)
- Shiyan Wen
(School of Economics, Xi’an University of Finance and Economics, Xi’an 710003, China)
Abstract
The Carbon Emissions Trading System (ETS) serves as a market-based mechanism to drive renewable energy (RE) investments, yet its heterogeneous impacts on different stakeholders remain underexplored. This paper treats the carbon market as an exogenous shock and develops a multi-agent equilibrium model incorporating carbon pricing, encompassing power generation enterprises, power transmission enterprises, power consumers, and the government, to analyze how carbon prices reshape RE investment layouts under dual-carbon goals. Using panel data from Zhejiang Province (2017–2022), a high-energy-consumption region with 25% net electricity imports, we simulate heterogeneous responses of agents to carbon price fluctuations (CNY 50–250/ton). The results show that RE on-grid electricity increases (+0.55% to +2.89%), while thermal power declines (–4.98% to −15.39%) on the generation side. Transmission-side RE sales rise (+3.25% to +9.74%), though total electricity sales decrease (−0.49% to −2.22%). On the consumption side, RE self-generation grows (+2.12% to +5.93%), yet higher carbon prices reduce overall utility (−0.44% to −2.05%). Furthermore, external electricity integration (peaking at 28.5% of sales in 2020) alleviates provincial entities’ carbon cost pressure under high carbon prices. This study offers systematic insights for renewable energy investment decisions and policy optimization.
Suggested Citation
Ning Yan & Shenhai Huang & Yan Chen & Daini Zhang & Qin Xu & Xiangyi Yang & Shiyan Wen, 2025.
"The Impact of Carbon Trading Market on the Layout Decision of Renewable Energy Investment—Theoretical Modeling and Case Study,"
Energies, MDPI, vol. 18(15), pages 1-30, July.
Handle:
RePEc:gam:jeners:v:18:y:2025:i:15:p:3950-:d:1708816
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:18:y:2025:i:15:p:3950-:d:1708816. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.