Journal of Humanities, Arts and Social Science

ISSN Print: 2576-0556 Downloads: 190765 Total View: 1745030
Frequency: monthly ISSN Online: 2576-0548 CODEN: JHASAY

The Impact of Carbon Emission Pricing Policy on the Transformation of Low Carbon Economy and Its Application in the Energy Industry

Yue Miao

Zhuhai DA HENG Qin Technology Development Co., Ltd., Zhuhai, Guangdong, China.

*Corresponding author: Yue Miao

Published: February 29,2024


The theory of externalities, public goods, and economic incentives all consider carbon emissions as a negative externality that harms the environment and requires economic tools to internalize its costs. This forms the theoretical foundation and global standard for carbon emission pricing policies. This paper examines the impact of carbon emission pricing policies on the transition to a low-carbon economy, particularly focusing on their application in the energy sector. To begin, the paper introduces the theoretical foundations of carbon emission pricing policy. By introducing economic costs to carbon emitters, such as taxing them or creating a carbon emissions trading market, carbon pricing policies can incentivize them to reduce their emissions. This paper summarizes the international practical experience of carbon emission pricing policies. The European Union's carbon emissions trading system is the most extensive, and the reduction of carbon emissions has been achieved through trading. Canada, Australia, and other countries have also implemented similar policies and have observed specific outcomes. These practical experiences demonstrate that carbon emission pricing policy can effectively promote low-carbon economic transformations. This paper delves into the effects of carbon emission pricing policy on the energy sector, which is the primary source of carbon emissions. The effect of such a policy on the energy sector is particularly significant, as it can motivate energy companies to transition to low-carbon energy and foster a transformation of energy systems. Moreover, carbon pricing policies can incentivize energy businesses to improve energy efficiency and reduce carbon emissions. This paper summarizes the benefits and challenges of carbon pricing policy and offers ideas for its implementation in the energy sector. Carbon emission pricing policies can provide long-term stability to the energy sector, while also encouraging research, development, and adoption of low-carbon technologies. Nevertheless, the implementation of carbon emission pricing policy is confronted with political, economic, and technological obstacles, necessitating the joint efforts of the government, businesses, and society.


B. Wang, P. Xu. Carbon pricing, dual financial frictions and "two-pillar" regulation [J]. Financial Research, 2021(12):57-74.

C.W. Song. Study on China's Carbon Neutral Pathway Based on Dynamic CGE [D]. Yanshan University, 2022.

Chen, Ruiqiong. On Australia's Carbon Pricing Policy: Problems, Causes and Prospects [D]. East China Normal University, 2021.

Dou XM, Zhuang GY. Carbon pricing policy under carbon neutral target: connotation, effect and China's response [J]. Enterprise Economy, 2021, 40(08):17-24.

Duan Hongbo, Yang Jianlong. Impact assessment of policy synergy on China's national autonomous contribution target [J]. Environmental Economics Research, 2018, 3(02):11-26+65.

General Zhou. Research on Emission Reduction Power Mechanism of Supply Chain Enterprises in the Context of "Carbon Neutrality" [D]. Suzhou University of Science and Technology, 2022. DOI:10.27748/d.cnki.gszkj.2022.000434.

Haihui Wang. Carbon pricing mechanism effect assessment and comparative study [J]. Financial Journal, 2023(03):24-34.

Jin Yuqi. Carbon Emission Right Valuation and Case Study [D]. Yunnan University of Finance and Economics, 2022. DOI:10.27455/d.cnki.gycmc.2022.000535.

Mo Jianlei, Duan Hongbo, Fan Ying, et al. China's energy and climate policy objectives in the Paris Agreement: comprehensive assessment and policy options [J]. Economic Research, 2018, 53(09):168-181.

Qin Yingying. Logical starting point, international reference and policy design of China's carbon tax under the goal of "double carbon" [J]. Southwest Finance, 2022(08):27-42.

Shao Shuai, Xu Le. Building a synergistic and complementary mechanism between carbon tax and carbon trading [N]. China Social Science Journal, 2022-05-18(003).

Tu Q. Research on the synergistic effect of carbon emission reduction policy and renewable energy policy in China's power sector [D]. Tianjin University, 2018.

Wang Xiping, Feng Yuan. Research on the impact effect of carbon pricing policy on power industry based on dynamic stochastic general equilibrium model [J]. Thermal Power Generation, 2023, 52(04):43-53.

Xing Li, Xu Wen, Hao Xiaojing. Recent Progress of International Carbon Pricing Initiatives and Related Thoughts [J]. International Taxation, 2022(08):29-36.

Xu Tingshuang, Zhong Chengchun, Huo Mingyue. Carbon Pricing Development Status, Trends and Implications for China's Carbon Tax Reform [J]. Heilongjiang Finance, 2022(11):63-65.

Yanni Liang. Electric vehicle charging and switching pricing model and policy research [D]. North China Electric Power University (Beijing), 2018.

Zeng Yu. Research on the choice of government subsidy, emission reduction and pricing policy tools to promote the development of microgrid industry [D]. Tianjin University, 2020. DOI:10.27356/d.cnki.gtjdu.2020.000109.

How to cite this paper

The Impact of Carbon Emission Pricing Policy on the Transformation of Low Carbon Economy and Its Application in the Energy Industry

How to cite this paper: Yue Miao. (2024) The Impact of Carbon Emission Pricing Policy on the Transformation of Low Carbon Economy and Its Application in the Energy IndustryJournal of Humanities, Arts and Social Science8(1), 273-277.