Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies

Cheng Che, Huixian Zheng (), Xin Geng, Yi Chen and Xiaoguang Zhang
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Cheng Che: School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China
Huixian Zheng: School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China
Xin Geng: School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China
Yi Chen: School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China
Xiaoguang Zhang: School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China

Energies, 2022, vol. 15, issue 17, 1-20

Abstract: This study examines the carbon reduction investment decisions of the electric power energy supply chain considering carbon trading and carbon subsidy policies in China’s “dual carbon” context. By building a three-level supply chain system including electric power producers, retailers, and consumers, we discuss the optimal decision-making problem of the supply chain for three models of decentralized supply chain decision making without government subsidies, centralized supply chain decision making with government subsidies, and centralized supply chain decision making with government subsidies and carbon emission reduction cost sharing. Through model solving and further numerical simulations, the results showed that the increase in carbon emission reduction investment cost has a significant negative impact on power price and the total expected income of the supply chain. However, a reasonable level of government carbon emission reduction subsidy can effectively alleviate the increase in power price and improve the total expected income of supply chain. In addition, carbon mission reduction investment and supply chain cost allocation can effectively improve the carbon emission reduction level of the power supply chain, improve the income and enthusiasm of electric power producers, and realize the sustainable development of electric power energy consumption and the environment.

Keywords: energy enterprises investment; sustainable consumption; carbon trading policy; carbon subsidy policy; electric power supply chain (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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