Research on the Impact of Output Adjustment Strategy and Carbon Trading Policy on the Response, Stability and Complexity of Steel Market under the Dynamic Game

Di Li, Qianbin Di, Hailin Mu, Zenglin Han, Hongye Wang and Ye Duan ()
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Di Li: School of Geography, Liaoning Normal University, Dalian 116029, China
Qianbin Di: School of Geography, Liaoning Normal University, Dalian 116029, China
Hailin Mu: Key Laboratory of Ocean Energy Utilization and Energy Conservation of Ministry of Education, Dalian University of Technology, Dalian 116024, China
Zenglin Han: Center for Studies of Marine Economy and Sustainable Development, Liaoning Normal University, Dalian 116029, China
Hongye Wang: School of Economics and Management, Dalian University of Technology, Dalian 116024, China
Ye Duan: School of Geography, Liaoning Normal University, Dalian 116029, China

Sustainability, 2022, vol. 14, issue 19, 1-40

Abstract: With the increasingly competitive environment in the steel market and the proposed dual carbon goals, the government will need to consider many factors, such as the realization of energy conservation and emission reduction targets, the production game between enterprises, and the adjustment of production strategies of enterprises. Therefore, this research constructs a repeated dynamic game model including carbon trading policy and other mixed reduction policies, introduces a bounded rationality output adjustment strategy, and studies the response, stability, and complexity of different scenarios in the steel industry. The results are as follows: (1) With the gradual increase in emission reduction targets, the output adjustment policies that enterprises can implement will show an increasing trend under the single carbon trading policy. (2) Under the mixed emission reduction policy, the output adjustment policies that affect enterprises with larger outputs will show an increasing trend when targets continue to increase. (3) Smaller-output enterprises will be restricted and affected by more factors, such as emission reduction targets and larger output enterprises. (4) The influence of carbon trading benchmarks on market stability region is not obvious. In summary, enterprises should comprehensively consider emission reduction policies, output adjustment policies, carbon trading benchmarks, and other factors to ensure that the enterprises and the entire market will not fall into an imbalanced state.

Keywords: dynamic game; carbon trading policy; market complexity and stability; steel industry; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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