Agent based modeling of energy consuming rights trading for low carbon transformation in China

Abstract The market-oriented allocation of Energy-Consuming Rights allows enterprises to trade legally obtained energy consumption quotas on public platforms within regional caps, improving energy efficiency and promoting sustainable development. As an institutional innovation, Energy-consuming righ...

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Main Authors: Feng Han, Xin Li, Xiaohan Bi, Jie Gao, Zihao Cao, Dong Yang, Feng Shi, Yongfei Jia
Format: Article
Language:English
Published: Nature Portfolio 2025-07-01
Series:Scientific Reports
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Online Access:https://doi.org/10.1038/s41598-025-10838-w
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author Feng Han
Xin Li
Xiaohan Bi
Jie Gao
Zihao Cao
Dong Yang
Feng Shi
Yongfei Jia
author_facet Feng Han
Xin Li
Xiaohan Bi
Jie Gao
Zihao Cao
Dong Yang
Feng Shi
Yongfei Jia
author_sort Feng Han
collection DOAJ
description Abstract The market-oriented allocation of Energy-Consuming Rights allows enterprises to trade legally obtained energy consumption quotas on public platforms within regional caps, improving energy efficiency and promoting sustainable development. As an institutional innovation, Energy-consuming rights trading (ECRT) addresses China’s energy and environmental challenges while fostering green transformation. This study employs agent-based modeling to simulate the dynamic interactions among enterprises, governments, and trading platforms under dual constraints of energy consumption and carbon emissions. The results show that: (1) ECRT reduces total energy consumption by 8.1% and carbon emissions by 9.8% compared to regions without trading markets, demonstrating its effectiveness in energy conservation and emission reduction. (2) Paid quotas outperform free quotas, reducing energy consumption by 7.9% and carbon emissions by 6.8%, while stabilizing trading prices and enhancing market activity. (3) High-quality development scenarios improve energy efficiency by 4.4% and reduce carbon emissions by 5%, aligning better with the “dual-carbon” goals. These findings provide valuable insights for optimizing ECRT mechanisms and advancing green, low-carbon economic transformation. Policy recommendations include refining quota allocation methods, enhancing market participation, and integrating ECRT with carbon trading systems to maximize efficiency.
format Article
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institution Kabale University
issn 2045-2322
language English
publishDate 2025-07-01
publisher Nature Portfolio
record_format Article
series Scientific Reports
spelling doaj-art-0b591ec201d843b3bc4d7d34249d308e2025-08-20T03:46:08ZengNature PortfolioScientific Reports2045-23222025-07-0115111610.1038/s41598-025-10838-wAgent based modeling of energy consuming rights trading for low carbon transformation in ChinaFeng Han0Xin Li1Xiaohan Bi2Jie Gao3Zihao Cao4Dong Yang5Feng Shi6Yongfei Jia7Institute of Science and Technology for Development of Shandong, Qilu University of Technology (Shandong Academy of Sciences)Institute of Science and Technology for Development of Shandong, Qilu University of Technology (Shandong Academy of Sciences)Information Research Institute of Shandong Academy of Sciences, Qilu University of Technology (Shandong Academy of Sciences)Institute of Science and Technology for Development of Shandong, Qilu University of Technology (Shandong Academy of Sciences)Institute of Science and Technology for Development of Shandong, Qilu University of Technology (Shandong Academy of Sciences)Institute of Science and Technology for Development of Shandong, Qilu University of Technology (Shandong Academy of Sciences)School of Environmental Science and Engineering, Qilu University of Technology (Shandong Academy of Sciences)Think Tank Center, Qilu University of Technology (Shandong Academy of Sciences)Abstract The market-oriented allocation of Energy-Consuming Rights allows enterprises to trade legally obtained energy consumption quotas on public platforms within regional caps, improving energy efficiency and promoting sustainable development. As an institutional innovation, Energy-consuming rights trading (ECRT) addresses China’s energy and environmental challenges while fostering green transformation. This study employs agent-based modeling to simulate the dynamic interactions among enterprises, governments, and trading platforms under dual constraints of energy consumption and carbon emissions. The results show that: (1) ECRT reduces total energy consumption by 8.1% and carbon emissions by 9.8% compared to regions without trading markets, demonstrating its effectiveness in energy conservation and emission reduction. (2) Paid quotas outperform free quotas, reducing energy consumption by 7.9% and carbon emissions by 6.8%, while stabilizing trading prices and enhancing market activity. (3) High-quality development scenarios improve energy efficiency by 4.4% and reduce carbon emissions by 5%, aligning better with the “dual-carbon” goals. These findings provide valuable insights for optimizing ECRT mechanisms and advancing green, low-carbon economic transformation. Policy recommendations include refining quota allocation methods, enhancing market participation, and integrating ECRT with carbon trading systems to maximize efficiency.https://doi.org/10.1038/s41598-025-10838-wEnergy-consuming rightsMarket-oriented allocationLow-carbon transformationAgent-based modelingPolicy simulation
spellingShingle Feng Han
Xin Li
Xiaohan Bi
Jie Gao
Zihao Cao
Dong Yang
Feng Shi
Yongfei Jia
Agent based modeling of energy consuming rights trading for low carbon transformation in China
Scientific Reports
Energy-consuming rights
Market-oriented allocation
Low-carbon transformation
Agent-based modeling
Policy simulation
title Agent based modeling of energy consuming rights trading for low carbon transformation in China
title_full Agent based modeling of energy consuming rights trading for low carbon transformation in China
title_fullStr Agent based modeling of energy consuming rights trading for low carbon transformation in China
title_full_unstemmed Agent based modeling of energy consuming rights trading for low carbon transformation in China
title_short Agent based modeling of energy consuming rights trading for low carbon transformation in China
title_sort agent based modeling of energy consuming rights trading for low carbon transformation in china
topic Energy-consuming rights
Market-oriented allocation
Low-carbon transformation
Agent-based modeling
Policy simulation
url https://doi.org/10.1038/s41598-025-10838-w
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AT jiegao agentbasedmodelingofenergyconsumingrightstradingforlowcarbontransformationinchina
AT zihaocao agentbasedmodelingofenergyconsumingrightstradingforlowcarbontransformationinchina
AT dongyang agentbasedmodelingofenergyconsumingrightstradingforlowcarbontransformationinchina
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