Agent-Based Modeling of Global Carbon Trading and Its Policy Implications for China in the Post-Kyoto Era

Authored by Zheng Wang, Qianting Zhu, Keran Duan, Jing Wu

Date Published: 2016

DOI: 10.1080/1540496x.2016.1152794

Sponsors: National Basic Research Program of China National Science Foundation for Young Scholar of China

Platforms: No platforms listed

Model Documentation: Other Narrative Mathematical description

Model Code URLs: Model code not found

Abstract

Carbon trading is an important component of global responses to climate change. Using agent-based modeling, this study constructs a global carbon trading model (GCTM), and simulates the effectiveness of the trading mechanism. Results show that: (1) quota allocation is the fundamental premise of carbon trading; (2) under the carbon trading mechanism, the cumulative per capita emissions of developed countries are still much higher than those in developing countries; (3) carbon trading could be an important policy choice to meet China's future emissions targets; and (4) to maximize incomes in the long run, China can set aside part of current quotas and use them in the future.
Tags
Economics growth Climate-change Emission permits Rights