Research on carbon quota trading mechanism of the Chinese automobile industry under the carbon peak target: A game theory approach

Ning Wang, Dandan Qin and Kai Shang

Energy, 2025, vol. 335, issue C

Abstract: The carbon quota management system is an important measure for China's automotive industry to address climate change, but it is still challenging to recognize a reasonable carbon trading price. This study establishes a carbon quota allocation game strategy balancing efficiency and fairness in the automotive industry based on the Zero-sum Gains Data Envelopment Analysis (ZSG-DEA) and Gini coefficient models, designs a carbon quota trading mechanism based on the bidirectional auction game model, and quantitatively analyzes the fluctuations in carbon quota trading prices. The results show that the average carbon quota trading price is 2269 CNY/ton, and the average marginal abatement cost of the automotive enterprises is 2632 CNY/ton. As the abatement rate increases, carbon trading prices are expected to fluctuate in the coming years (ranging from 2669 CNY/ton to 2768 CNY/ton) but gradually stabilize (remain around 2665 CNY/ton) with the arrival of carbon peaking. This study can provide reference for the government to formulate price control strategies and the automotive enterprises to make decision in the carbon trading process.

Keywords: Automotive industry; Carbon quota allocation strategy; Carbon quota trading mechanism; Bidirectional auction game model; ZSG-DEA (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:335:y:2025:i:c:s0360544225036096

DOI: 10.1016/j.energy.2025.137967

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