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Multi-Agents-Based Modeling and Simulation for Carbon Permits Trading in China: A Regional Development Perspective

Author

Listed:
  • Junjun Zheng

    (School of Economic and Management, Wuhan University, Wuhan 430072, China)

  • Mingmiao Yang

    (School of Economic and Management, Wuhan University, Wuhan 430072, China)

  • Gang Ma

    (School of Economic and Management, Wuhan University, Wuhan 430072, China)

  • Qian Xu

    (School of Economic and Management, Wuhan University, Wuhan 430072, China)

  • Yujie He

    (School of Economic and Management, Wuhan University, Wuhan 430072, China)

Abstract

China has been actively taking actions to control carbon emissions and promoting development of a carbon market. However, there are many disadvantages in a carbon market, owing to various designs and policies still under trial and implementation. Adopting the multi-agents technique, we constructed a framework about national carbon market to estimate the effect of a different design of policy made on the GDP (Gross Domestic Product) and environment. In particular, national and regional abatement policies were analyzed in our study. The results showed the carbon-trading mechanism can effectively reduce carbon emissions and make a negative impact on GDP. National abatement can neither be too high nor too low for reducing carbon emissions and maintaining economic stability. For different regions, the central region was impacted the most by a carbon trading mechanism, and the east region was the opposite. Moreover, the “sweeping approach” policy should be replaced by a regional “discriminating policy” because the abatement requirement to the western region was low and to the eastern region was relatively high, which is more beneficial to China’s regional development.

Suggested Citation

  • Junjun Zheng & Mingmiao Yang & Gang Ma & Qian Xu & Yujie He, 2020. "Multi-Agents-Based Modeling and Simulation for Carbon Permits Trading in China: A Regional Development Perspective," IJERPH, MDPI, vol. 17(1), pages 1-20, January.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:1:p:301-:d:304142
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    References listed on IDEAS

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    Cited by:

    1. Shanglei Chai & Ruixuan Sun & Ke Zhang & Yueting Ding & Wei Wei, 2022. "Is Emissions Trading Scheme (ETS) an Effective Market-Incentivized Environmental Regulation Policy? Evidence from China’s Eight ETS Pilots," IJERPH, MDPI, vol. 19(6), pages 1-18, March.
    2. Shaolong Zeng & Qinyi Fu & Fazli Haleem & Yang Shen & Weibin Peng & Man Ji & Yilong Gong & Yilong Xu, 2024. "China’s carbon trading pilot policy, economic stability, and high-quality economic development," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.

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