Simulation of global carbon trading with agent-based modeling

Zhu Qianting, Wujing and Wangzheng

No 6876, EcoMod2014 from EcoMod

Abstract: Using agent-based modeling, this study creates a global carbon trading simulation system, and simulates the global carbon trading market under different scenarioes. To evaluate the effect of quota-based carbon emission permits trading mechanism globally, this article constructs a carbon trading model by using ABS modeling technology, and then develops a global carbon trading system, finally examining the capital flows of carbon trading and its impact on global climate protection. Simulation results shows that :( 1) the results of carbon trading depend on quota allocation. To offset the numerous historic carbon emissions, developed countries such as US would face huge quota deficits in the former scenario. (2) With a decrease in global carbon emission quotas and an increase demand for carbon emissions, the global carbon price will rise in the future.(3) The implementation of carbon trading is helpful for transferring capital mainly from developed countries to developing countries. (4)Under the carbon emission trading process, developed countries will purchase a large number of emissions quotas from developing countries, therefore, the cumulative carbon emissions per capita in developed countries will be still much higher than that in developing countries. (5) In both scenarios, carbon emission trading always increases the global Ramsey utility.

Keywords: China (CN); the US (US); the EU (EU); Japan (JP); the former Soviet Union (FSU); and rest of the world (ROW).; Agent-based modeling; Impact and scenario analysis (search for similar items in EconPapers)
Date: 2014-07-03
New Economics Papers: this item is included in nep-agr, nep-cmp, nep-ene, nep-env and nep-mst
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Persistent link: https://EconPapers.repec.org/RePEc:ekd:006356:6876

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