Uncovering the Driving Factors of Carbon Emissions in an Investment Allocation Model of China’s High-Carbon and Low-Carbon Energy

In the view of long-term comprehensive development, the concept of low-carbon economy has long been a concern. In this paper, we build a pure energy-economic system and explore the exact influencing factors in the investment allocation of high-carbon and low-carbon energy with the purpose of mitigating carbon dioxide in the atmosphere. The dynamic analysis shows that the model that we built is applicable for the current market situation and the way we adjust the investments of high-carbon and low-carbon energy are conductive to carbon abatement in the atmosphere. On the basis of the stability analysis and numerical simulation, some strategies are given to decrease the carbon dioxide in the atmosphere. The results show that the social consumption and public consumption behavior are the most important factors responsible for the variation in the atmospheric carbon dioxide. The cleanliness of high carbon presents an obvious mitigating effect on carbon in the atmosphere and the effect of marginal profit of high-carbon energy is the weakest. In addition, enhancing marginal profit, return on investment and investment share of low-carbon energy are beneficial to reduce carbon dioxide in the atmosphere, while a return on investment of high-carbon energy increasing is the detriment of the carbon dioxide in the atmosphere. Finally, we provide carbon mitigation effort by considering both economic development and carbon abatement for policymakers to achieve a desirable emission-reduction effect.