Carbon Reduction Strategies Based on an NW Small-World Network with a Progressive Carbon Tax

Bin Wu, Wanying Huang and Pengfei Liu
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Bin Wu: School of Economics and Management, Southeast University, No. 2 Southeast University Road, Nanjing 211189, China
Wanying Huang: School of Economics and Management, Southeast University, No. 2 Southeast University Road, Nanjing 211189, China
Pengfei Liu: School of Economics and Management, Southeast University, No. 2 Southeast University Road, Nanjing 211189, China

Sustainability, 2017, vol. 9, issue 10, 1-22

Abstract: There is an increasingly urgent need to reduce carbon emissions. Devising effective carbon tax policies has become an important research topic. It is necessary to explore carbon reduction strategies based on the design of carbon tax elements. In this study, we explore the effect of a progressive carbon tax policy on carbon emission reductions using the logical deduction method. We apply experience-weighted attraction learning theory to construct an evolutionary game model for enterprises with different levels of energy consumption in an NW small-world network, and study their strategy choices when faced with a progressive carbon tax policy. The findings suggest that enterprises that adopt other energy consumption strategies gradually transform to a low energy consumption strategy, and that this trend eventually spreads to the entire system. With other conditions unchanged, the rate at which enterprises change to a low energy consumption strategy becomes faster as the discount coefficient, the network externality, and the expected adjustment factor increase. Conversely, the rate of change slows as the cost of converting to a low energy consumption strategy increases.

Keywords: progressive carbon tax; NW small-world network; evolutionary game; experience-weighted attraction (EWA) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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