Simulation of Technology Diffusion and Carbon Market Mechanism in Petrochemical Industry for Carbon Emission Reduction

In the realm of petrochemical production, the implementation of advanced urea synthesis technology, comprehensive energy-saving and carbon-reduction techniques for oil refining and heating furnaces, as well as integrated methods for the balanced treatment of oil, gas, and water, can significantly diminish lower carbon emissions and energy consumption. At present, more and more high-energy-consuming industries such as petrochemicals will gradually enter the Chinese carbon market. These industries can reduce carbon emissions through energy-saving measures, and convert these carbon emissions into quotas to trade in the market to make profits and realize the appreciation of carbon assets. This paper examines the impact of technology diffusion on the participation of petrochemical enterprises in carbon trading, focusing on the advanced energy-saving technologies prevalent in the industry. The findings indicate that established petrochemical facilities tend to opt for technological upgrades when quota allocations are lenient, whereas newly established facilities are more inclined to adopt new technologies under stricter quota conditions. In the initial phase of carbon market operations, it is advisable to implement lenient quotas to facilitate technological upgrades and enhance energy efficiency in existing petrochemical plants, with a gradual tightening of quotas as the market matures.