Low carbon technology diffusion of competitive firms under cap and trade mechanism—Evolutionary game analysis based on complex network
Cap and trade is considered to be the most effective market incentive mechanism for carbon emission reduction to deal with global climate change.In order to study the optimal decision-making of production,emission reduction and carbon trading as well as the diffusion of low-carbon technology under this mechanism,we build two emission reduction game models of low-carbon technology and traditional technology under cap and trade mechanism for competitive firms.The impact of various parameters on the optimal decision-making is analyzed;at the same time,taking WS small world network as the carrier,the evolution rules are designed,and the driving effect of various factors on the diffusion of low-carbon technology is explored by numerical simulation.The results show that the increase of carbon cap and competition intensity is not beneficial to the improvement of emission reduction level,carbon price and carbon trading volume in the micro level.However,output is positively correlated with carbon cap and negatively correlated with competition intensity.In the macro level,the diffusion degree of low-carbon technology under cap and trade mechanism depends on the competition intensity and cap level among firms.The reduction of cap level and the weakening of firm competition intensity can promote the diffusion of low-carbon technology.Compared with the subsidy mechanism,cap and trade mechanism can achieve"win-win"situation between economic and environmental benefits,that is,cap and trade mechanism can promote simultaneously the diffusion of low-carbon technologies and enable firms to obtain higher benefits.
cap and tradelow-carbon technology diffusioncomplex networkevolution game
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