The Effect of Carbon Quota Policy on Environmental Sustainability of Power Supply Chain

Guanxuan Su and Benhe Gao ()
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Guanxuan Su: Shenzhen International Graduate School, Tsinghua University, 2279 Lishui Road, Shenzhen 518055, China
Benhe Gao: Shenzhen International Graduate School, Tsinghua University, 2279 Lishui Road, Shenzhen 518055, China

Sustainability, 2024, vol. 16, issue 13, 1-18

Abstract: As is well known, limiting carbon emissions is an important link in mitigating global climate change. Carbon quotas are a widely used policy tool by governments around the world without increasing the financial burden on the government. To study the impact of carbon quota policies on the clean transformation of the key carbon emitting industry—the power industry, we established a duopoly model and conducted an analysis and numerical simulation. The research has found that the effectiveness of carbon quota policies is closely related to the level of competition within the power supply chain and is also influenced by the market share of clean energy power generation enterprises. Moreover, in some cases, it may have the opposite effect.

Keywords: carbon emissions; quota; power industry; duopoly; market share (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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