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Design and selection of carbon quota mechanisms from the perspective of carbon trading

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  • Xiaodong Yu
  • Fangcheng Sun
  • Hongmei Zhao
  • Jiahong Dai
  • Yuxin Shu
  • Xin Chen

Abstract

The research shows that when the initial carbon emission per unit product and the emission reduction cost coefficient achieve a certain combination range, the two carbon quota mechanisms will be effective, and its feasible range will be larger. Further, compared with the carbon quota mechanism based on output, manufacturers and retailers will always increase the sales price and wholesale price of products under the carbon quota mechanism based on emission reduction technology but will reduce the emission reduction per unit product. The government will also reduce its total carbon quota under the carbon quota mechanism based on emission reduction technology.

Suggested Citation

  • Xiaodong Yu & Fangcheng Sun & Hongmei Zhao & Jiahong Dai & Yuxin Shu & Xin Chen, 2023. "Design and selection of carbon quota mechanisms from the perspective of carbon trading," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4572-4588, December.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:8:p:4572-4588
    DOI: 10.1002/mde.3967
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