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

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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)

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.

Suggested Citation

  • Guanxuan Su & Benhe Gao, 2024. "The Effect of Carbon Quota Policy on Environmental Sustainability of Power Supply Chain," Sustainability, MDPI, vol. 16(13), pages 1-18, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5787-:d:1430511
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    References listed on IDEAS

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