From a long-term dynamic perspective: how should internal carbon pricing be implemented?

Internal carbon pricing has the potential to positively influence enterprises’ carbon emissions. However, the strategies for implementing internal carbon pricing for enterprises and internal organizations remain unclear. In this study, employing a differential game research methodology, we design th...

Full description

Bibliographic Details
Main Authors: Liu Yanfei, Zhu Hejie, Bai E, Li Long
Format: Article
Language:English
Published: Frontiers Media S.A. 2023-12-01
Series:Frontiers in Energy Research
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fenrg.2023.1304272/full
_version_ 1827395979066736640
author Liu Yanfei
Liu Yanfei
Zhu Hejie
Bai E
Li Long
author_facet Liu Yanfei
Liu Yanfei
Zhu Hejie
Bai E
Li Long
author_sort Liu Yanfei
collection DOAJ
description Internal carbon pricing has the potential to positively influence enterprises’ carbon emissions. However, the strategies for implementing internal carbon pricing for enterprises and internal organizations remain unclear. In this study, employing a differential game research methodology, we design three implementation strategies for internal carbon pricing from a dynamic time perspective. Through comparative research and numerical analysis of these three different strategies’ effects on the changes in enterprise carbon emission reduction and goodwill, we find that for both enterprises’ carbon emission reduction and goodwill, Model C (implementing secondary investment for internal carbon fee collection) is optimal when the proportion of internal organizational revenue allocation is high and the proportion coefficient of internal carbon fee collection is low. When the proportion coefficient of internal carbon fee collection meets certain conditions, it makes the total profit of system under model C (implementing secondary investment for internal carbon fee collection) larger than the other two strategies. Due to short-sighted behavior, both enterprises’ profits and carbon emissions gradually decrease, leading to the internal carbon prices of enterprises under the three strategies will approach a stable value.
first_indexed 2024-03-08T18:42:49Z
format Article
id doaj.art-5a4ddccc985640a89e9507e2d7b67d45
institution Directory Open Access Journal
issn 2296-598X
language English
last_indexed 2024-03-08T18:42:49Z
publishDate 2023-12-01
publisher Frontiers Media S.A.
record_format Article
series Frontiers in Energy Research
spelling doaj.art-5a4ddccc985640a89e9507e2d7b67d452023-12-29T04:17:07ZengFrontiers Media S.A.Frontiers in Energy Research2296-598X2023-12-011110.3389/fenrg.2023.13042721304272From a long-term dynamic perspective: how should internal carbon pricing be implemented?Liu Yanfei0Liu Yanfei1Zhu Hejie2Bai E3Li Long4School of Management, Harbin University of Commerce, Harbin, ChinaSchool of Energy and Civil Engineering, Harbin University of Commerce, Harbin, ChinaSchool of Management, Harbin University of Commerce, Harbin, ChinaSchool of Management, Harbin University of Commerce, Harbin, ChinaSchool of Energy and Civil Engineering, Harbin University of Commerce, Harbin, ChinaInternal carbon pricing has the potential to positively influence enterprises’ carbon emissions. However, the strategies for implementing internal carbon pricing for enterprises and internal organizations remain unclear. In this study, employing a differential game research methodology, we design three implementation strategies for internal carbon pricing from a dynamic time perspective. Through comparative research and numerical analysis of these three different strategies’ effects on the changes in enterprise carbon emission reduction and goodwill, we find that for both enterprises’ carbon emission reduction and goodwill, Model C (implementing secondary investment for internal carbon fee collection) is optimal when the proportion of internal organizational revenue allocation is high and the proportion coefficient of internal carbon fee collection is low. When the proportion coefficient of internal carbon fee collection meets certain conditions, it makes the total profit of system under model C (implementing secondary investment for internal carbon fee collection) larger than the other two strategies. Due to short-sighted behavior, both enterprises’ profits and carbon emissions gradually decrease, leading to the internal carbon prices of enterprises under the three strategies will approach a stable value.https://www.frontiersin.org/articles/10.3389/fenrg.2023.1304272/fullinternal carbon pricingdifferential gamegoodwillenterprise carbon reduction emissionscarbon emission
spellingShingle Liu Yanfei
Liu Yanfei
Zhu Hejie
Bai E
Li Long
From a long-term dynamic perspective: how should internal carbon pricing be implemented?
Frontiers in Energy Research
internal carbon pricing
differential game
goodwill
enterprise carbon reduction emissions
carbon emission
title From a long-term dynamic perspective: how should internal carbon pricing be implemented?
title_full From a long-term dynamic perspective: how should internal carbon pricing be implemented?
title_fullStr From a long-term dynamic perspective: how should internal carbon pricing be implemented?
title_full_unstemmed From a long-term dynamic perspective: how should internal carbon pricing be implemented?
title_short From a long-term dynamic perspective: how should internal carbon pricing be implemented?
title_sort from a long term dynamic perspective how should internal carbon pricing be implemented
topic internal carbon pricing
differential game
goodwill
enterprise carbon reduction emissions
carbon emission
url https://www.frontiersin.org/articles/10.3389/fenrg.2023.1304272/full
work_keys_str_mv AT liuyanfei fromalongtermdynamicperspectivehowshouldinternalcarbonpricingbeimplemented
AT liuyanfei fromalongtermdynamicperspectivehowshouldinternalcarbonpricingbeimplemented
AT zhuhejie fromalongtermdynamicperspectivehowshouldinternalcarbonpricingbeimplemented
AT baie fromalongtermdynamicperspectivehowshouldinternalcarbonpricingbeimplemented
AT lilong fromalongtermdynamicperspectivehowshouldinternalcarbonpricingbeimplemented