IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i8p6908-d1127735.html
   My bibliography  Save this article

Dynamic Analysis and Simulation of the Feasibility and Stability of Innovative Carbon Emission Reduction Projects Entering the Carbon-Trading Market

Author

Listed:
  • Haotong Jiang

    (College of Economics and Management, Northwest A&F University, Yangling 712100, China)

  • Liuyang Yao

    (College of Economics and Management, Northwest A&F University, Yangling 712100, China)

  • Xueru Bai

    (College of Economics and Management, Northwest A&F University, Yangling 712100, China)

  • Hua Li

    (College of Economics and Management, Northwest A&F University, Yangling 712100, China)

Abstract

Designing green agricultural production projects as CER projects is attractive, as it can play a role in promoting the spread of green production technologies and reducing carbon emissions based on market-based compensation. This research constructed a generic analytical framework using evolutionary game methods to evaluate the feasibility and stability of innovative CER projects by numerical analysis or simulation. Finally, two complex scenarios were analysed using simulations based on the framework. The simulation analysis results show that when the profits of VER and CER projects are close, the government’s direct intervention will lead to instability in market development, and the development of VER projects should be focused on. Government subsidies to promote the agricultural sector to participate in CER construction can be gradually reduced with the development of the market. When the reduction speed is slow enough, the effectiveness of subsidies will not be affected. The framework will be helpful to evaluate the feasibility and effectiveness of CER mechanism innovation and development, and to formulate more targeted policies to promote the popularization of green agricultural production technologies.

Suggested Citation

  • Haotong Jiang & Liuyang Yao & Xueru Bai & Hua Li, 2023. "Dynamic Analysis and Simulation of the Feasibility and Stability of Innovative Carbon Emission Reduction Projects Entering the Carbon-Trading Market," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6908-:d:1127735
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/8/6908/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/8/6908/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huang, Yongfu & Barker, Terry, 2012. "The Clean Development Mechanism and low carbon development: A panel data analysis," Energy Economics, Elsevier, vol. 34(4), pages 1033-1040.
    2. Chen, Yu & Hu, Wei & Chen, Paul & Ruan, Roger, 2017. "Household biogas CDM project development in rural China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 184-191.
    3. Lybbert, Travis J. & Sumner, Daniel A., 2012. "Agricultural technologies for climate change in developing countries: Policy options for innovation and technology diffusion," Food Policy, Elsevier, vol. 37(1), pages 114-123.
    4. Nicolas Kreibich & Lukas Hermwille, 2021. "Caught in between: credibility and feasibility of the voluntary carbon market post-2020," Climate Policy, Taylor & Francis Journals, vol. 21(7), pages 939-957, August.
    5. Qiuyue Xia & Lu Li & Jie Dong & Bin Zhang, 2021. "Reduction Effect and Mechanism Analysis of Carbon Trading Policy on Carbon Emissions from Land Use," Sustainability, MDPI, vol. 13(17), pages 1-22, August.
    6. Ari, İzzet, 2013. "Voluntary emission trading potential of Turkey," Energy Policy, Elsevier, vol. 62(C), pages 910-919.
    7. Hanna-Mari Ahonen & Juliana Kessler & Axel Michaelowa & Aglaja Espelage & Stephan Hoch, 2022. "Governance of Fragmented Compliance and Voluntary Carbon Markets Under the Paris Agreement," Politics and Governance, Cogitatio Press, vol. 10(1), pages 235-245.
    8. Fan, Ruguo & Dong, Lili, 2018. "The dynamic analysis and simulation of government subsidy strategies in low-carbon diffusion considering the behavior of heterogeneous agents," Energy Policy, Elsevier, vol. 117(C), pages 252-262.
    9. Muller, Adrian, 2007. "How to make the clean development mechanism sustainable--The potential of rent extraction," Energy Policy, Elsevier, vol. 35(6), pages 3203-3212, June.
    10. Pushpam Kumar & Uwe A. Schneider, 2008. "Greenhouse gas emission mitigation through agriculture," Working Papers FNU-155, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2008.
    11. Rongrong Zheng & Jiasui Zhan & Luxing Liu & Yanli Ma & Zishuai Wang & Lianhui Xie & Dunchun He, 2019. "Factors and Minimal Subsidy Associated with Tea Farmers’ Willingness to Adopt Ecological Pest Management," Sustainability, MDPI, vol. 11(22), pages 1-12, November.
    12. Zhiyuan Yu & Muhammad Hafeez & Lihan Liu & Muhammad Tariq Mahmood & Hong Wu, 2019. "Evaluating the Minor Coarse Cereals Product Crowdfunding Platform through Evolutionary Game Analysis," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    13. Qianqian Wei & Sirui Xiao, 2022. "Assessing barriers to the internationalization of China’s certified emission reductions (CCERs): a Delphi survey," Climate Policy, Taylor & Francis Journals, vol. 22(7), pages 906-917, August.
    14. Krey, Matthias, 2005. "Transaction costs of unilateral CDM projects in India-results from an empirical survey," Energy Policy, Elsevier, vol. 33(18), pages 2385-2397, December.
    15. Perdan, Slobodan & Azapagic, Adisa, 2011. "Carbon trading: Current schemes and future developments," Energy Policy, Elsevier, vol. 39(10), pages 6040-6054, October.
    16. Tao Li & Lei Ma & Zheng Liu & Chaonan Yi & Kaitong Liang, 2023. "Dual Carbon Goal-Based Quadrilateral Evolutionary Game: Study on the New Energy Vehicle Industry in China," IJERPH, MDPI, vol. 20(4), pages 1-16, February.
    17. Jianguo Du & Zhuoyun Zhou & Lingyan Xu, 2020. "Evolutionary Game Mechanism on Complex Networks of Green Agricultural Production under Intensive Management Pattern," Complexity, Hindawi, vol. 2020, pages 1-13, March.
    18. Zheng, Shan & Yu, Lianghong, 2022. "The government's subsidy strategy of carbon-sink fishery based on evolutionary game," Energy, Elsevier, vol. 254(PB).
    19. Wünscher, Tobias & Engel, Stefanie & Wunder, Sven, 2008. "Spatial targeting of payments for environmental services: A tool for boosting conservation benefits," Ecological Economics, Elsevier, vol. 65(4), pages 822-833, May.
    20. Yoon, Jong-Han & Sim, Kwang-ho, 2015. "Why is South Korea's renewable energy policy failing? A qualitative evaluation," Energy Policy, Elsevier, vol. 86(C), pages 369-379.
    21. Purohit, Pallav, 2008. "Small hydro power projects under clean development mechanism in India: A preliminary assessment," Energy Policy, Elsevier, vol. 36(6), pages 2000-2015, June.
    22. Ryan Wiser & Kevin Porter & Robert Grace, 2005. "Evaluating Experience with Renewables Portfolio Standards in the United States," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 10(2), pages 237-263, April.
    23. Liu, Xuemei, 2008. "The monetary compensation mechanism: An alternative to the clean development mechanism," Ecological Economics, Elsevier, vol. 66(2-3), pages 289-297, June.
    24. Kim, Eun-Hee & Lyon, Thomas P., 2011. "Strategic environmental disclosure: Evidence from the DOE's voluntary greenhouse gas registry," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 311-326, May.
    25. Antônio Carlos Pacagnella Júnior & Henrique Luiz da Silva & Wagner Wilson Bortoletto & Paulo Sergio de Arruda Ignacio, 2023. "Financial and environmental efficiency of CDM projects: Analysis and classification for investment decisions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 926-941, March.
    26. Pii‐Tuulia Nikula, 2022. "Beyond compliance – Voluntary climate mitigation by New Zealand firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1456-1464, September.
    27. Schneider, Uwe A. & Kumar, Pushpam, 2008. "Greenhouse Gas Mitigation through Agriculture," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 23(1), pages 1-5.
    28. Eva-Marie Meemken & Matin Qaim, 2018. "Organic Agriculture, Food Security, and the Environment," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 39-63, October.
    29. Uwe A. Schneider & Pete Smith, 2008. "Greenhouse Gas Emission Mitigation and Emission Intensities in Agriculture," Working Papers FNU-164, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2008.
    30. Dominique Finon, 2006. "The Social Efficiency Of Instruments For The Promotion Of Renewable Energies In The Liberalised Power Industry," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(3), pages 309-343, September.
    31. Cerbu, Gillian A. & Sonwa, Denis J. & Pokorny, Benno, 2013. "Opportunities for and capacity barriers to the implementation of REDD+ projects with smallholder farmers: Case study of Awae and Akok, Centre and South Regions, Cameroon," Forest Policy and Economics, Elsevier, vol. 36(C), pages 60-70.
    32. Tesfaye T. Lemma & Ayalew Lulseged & Mohammad Tavakolifar, 2021. "Corporate commitment to climate change action, carbon risk exposure, and a firm's debt financing policy," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3919-3936, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Telmo José Mendes & Diego Silva Siqueira & Eduardo Barretto Figueiredo & Ricardo de Oliveira Bordonal & Mara Regina Moitinho & José Marques Júnior & Newton La Scala Jr., 2021. "Soil carbon stock estimations: methods and a case study of the Maranhão State, Brazil," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16410-16427, November.
    2. Kreft, Cordelia & Huber, Robert & Wuepper, David & Finger, Robert, 2021. "The role of non-cognitive skills in farmers' adoption of climate change mitigation measures," Ecological Economics, Elsevier, vol. 189(C).
    3. Hari Wahyu Wijayanto & Kai-An Lo & Hery Toiba & Moh Shadiqur Rahman, 2022. "Does Agroforestry Adoption Affect Subjective Well-Being? Empirical Evidence from Smallholder Farmers in East Java, Indonesia," Sustainability, MDPI, vol. 14(16), pages 1-10, August.
    4. Zhen, Wei & Qin, Quande & Wei, Yi-Ming, 2017. "Spatio-temporal patterns of energy consumption-related GHG emissions in China's crop production systems," Energy Policy, Elsevier, vol. 104(C), pages 274-284.
    5. Huarui Gong & Jing Li & Zhen Liu & Yitao Zhang & Ruixing Hou & Zhu Ouyang, 2022. "Mitigated Greenhouse Gas Emissions in Cropping Systems by Organic Fertilizer and Tillage Management," Land, MDPI, vol. 11(7), pages 1-18, July.
    6. Oliver Lazarus & Sonali McDermid & Jennifer Jacquet, 2021. "The climate responsibilities of industrial meat and dairy producers," Climatic Change, Springer, vol. 165(1), pages 1-21, March.
    7. David Bryngelsson & Fredrik Hedenus & Daniel J. A. Johansson & Christian Azar & Stefan Wirsenius, 2017. "How Do Dietary Choices Influence the Energy-System Cost of Stabilizing the Climate?," Energies, MDPI, vol. 10(2), pages 1-13, February.
    8. Soy-Massoni, Emma & Langemeyer, Johannes & Varga, Diego & Sáez, Marc & Pintó, Josep, 2016. "The importance of ecosystem services in coastal agricultural landscapes: Case study from the Costa Brava, Catalonia," Ecosystem Services, Elsevier, vol. 17(C), pages 43-52.
    9. Ancuta Isbasoiu & Pierre-Alain Jayet & Stéphane De Cara, 2021. "Increasing food production and mitigating agricultural greenhouse gas emissions in the European Union: impacts of carbon pricing and calorie production targeting," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 409-440, April.
    10. Amanda Silva‐Parra & Juan Manuel Trujillo‐González & Eric C. Brevik, 2021. "Greenhouse gas balance and mitigation potential of agricultural systems in Colombia: A systematic analysis," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 11(3), pages 554-572, June.
    11. Chen, Jiandong & Cheng, Shulei & Song, Malin, 2018. "Changes in energy-related carbon dioxide emissions of the agricultural sector in China from 2005 to 2013," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 748-761.
    12. Wang, Guangshuai & Liang, Yueping & Zhang, Qian & Jha, Shiva K. & Gao, Yang & Shen, Xiaojun & Sun, Jingsheng & Duan, Aiwang, 2016. "Mitigated CH4 and N2O emissions and improved irrigation water use efficiency in winter wheat field with surface drip irrigation in the North China Plain," Agricultural Water Management, Elsevier, vol. 163(C), pages 403-407.
    13. Saw Min & Martin Rulík, 2020. "Comparison of Carbon Dioxide (CO 2 ) Fluxes between Conventional and Conserved Irrigated Rice Paddy Fields in Myanmar," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    14. Connor, Melanie & de Guia, Annalyn H. & Quilloy, Reianne & Van Nguyen, Hung & Gummert, Martin & Sander, Bjoern Ole, 2020. "When climate change is not psychologically distant – Factors influencing the acceptance of sustainable farming practices in the Mekong river Delta of Vietnam," World Development Perspectives, Elsevier, vol. 18(C).
    15. Franco-Luesma, Samuel & Álvaro-Fuentes, Jorge & Plaza-Bonilla, Daniel & Arrúe, José Luis & Cantero-Martínez, Carlos & Cavero, José, 2019. "Influence of irrigation time and frequency on greenhouse gas emissions in a solid-set sprinkler-irrigated maize under Mediterranean conditions," Agricultural Water Management, Elsevier, vol. 221(C), pages 303-311.
    16. Anna Kocira & Mariola Staniak & Marzena Tomaszewska & Rafał Kornas & Jacek Cymerman & Katarzyna Panasiewicz & Halina Lipińska, 2020. "Legume Cover Crops as One of the Elements of Strategic Weed Management and Soil Quality Improvement. A Review," Agriculture, MDPI, vol. 10(9), pages 1-41, September.
    17. Kerstin Jantke & Martina J. Hartmann & Livia Rasche & Benjamin Blanz & Uwe A. Schneider, 2020. "Agricultural Greenhouse Gas Emissions: Knowledge and Positions of German Farmers," Land, MDPI, vol. 9(5), pages 1-13, April.
    18. Song, Guobao & Song, Jie & Zhang, Shushen, 2016. "Modelling the policies of optimal straw use for maximum mitigation of climate change in China from a system perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 789-810.
    19. Kathrin Hasler & Hans-Werner Olfs & Onno Omta & Stefanie Bröring, 2016. "Drivers for the Adoption of Eco-Innovations in the German Fertilizer Supply Chain," Sustainability, MDPI, vol. 8(8), pages 1-18, July.
    20. Miomir Jovanović & Ljiljana Kašćelan & Aleksandra Despotović & Vladimir Kašćelan, 2015. "The Impact of Agro-Economic Factors on GHG Emissions: Evidence from European Developing and Advanced Economies," Sustainability, MDPI, vol. 7(12), pages 1-21, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6908-:d:1127735. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.