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Domestic Regional Synergy in Achieving National Climate Goals—The Role of Comparative Advantage in Emission Reduction

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  • Dongxu Chen

    (School of Management, Harbin Institute of Technology, Harbin 150001, China)

  • Xiaoying Chang

    (School of Humanities, Social Sciences & Law, Harbin Institute of Technology, Harbin 150001, China)

  • Tao Hong

    (School of Management, Harbin Institute of Technology, Harbin 150001, China)

  • Tao Ma

    (School of Management, Harbin Institute of Technology, Harbin 150001, China)

Abstract

Domestic regional synergistic emission reduction is important in achieving national climate goals. This study constructed a game theory-based model for regional synergistic emission reduction, modified the Basic Climate Game using the exact-hat algebra method, and expanded the game model using a general spatial equilibrium model to incorporate cross-regional economic impacts generated by emission reduction actions through factors and product flows. The formation of regional comparative advantages in emission reductions and their impact on synergistic emission reductions were revealed through regional characteristics such as emission elasticity, sectoral structure, regional trade shares, and green total factor productivity. A form of synergy was then proposed that utilizes the comparative advantages of different regions, allowing for synergistic emission reductions across different income regions and engagement with regions that are still at the carbon-peaking stage in cooperation. Moreover, the model was created to be as close to the economic reality as possible to provide a trade, industry, and economic growth policy that complements emission-reduction policies.

Suggested Citation

  • Dongxu Chen & Xiaoying Chang & Tao Hong & Tao Ma, 2023. "Domestic Regional Synergy in Achieving National Climate Goals—The Role of Comparative Advantage in Emission Reduction," Land, MDPI, vol. 12(9), pages 1-23, September.
    • Handle: RePEc:gam:jlands:v:12:y:2023:i:9:p:1723-:d:1232840
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    References listed on IDEAS

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