Impact of Carbon Market Policies on Carbon Emissions and Profits of Power Generation Enterprises Using an Agent-based Approach

At present, as an innovative carbon emission reduction mechanism, carbon emissions trading (CET) has become a key strategy for slowing down the growth of carbon emissions in China. However, China's policy system regarding the carbon market still needs to be improved, especially lacking effective demonstrations on the impact of the tightness of policies on the economy and the environment. Therefore, this paper constructs a carbon market trading model using an agent-based approach, starting from the behaviors of three types of agents, namely, power enterprises, the government and users, and analyzes the impacts of different carbon market policy scenarios on the economic benefits and carbon emissions of enterprises from the bottom up, aiming to provide a reference for China to introduce appropriate carbon market policies. The research results show that the government should appropriately lift restrictions on carbon prices to stimulate the willingness of power enterprises to update technologies. When introducing policies on carbon over-emission penalties, carbon quota allocation, and technology update subsidies, the government should strike a balance between the economy and the environment to ensure that the policies can effectively promote emission reduction while guaranteeing the economic benefits of enterprises. Electric power enterprises should actively introduce more advanced carbon emission reduction technologies and undertake social responsibilities to contribute to achieving carbon neutrality. © 2024 Chin.Soc.for Elec.Eng.