The carbon market is regarded as one of the important means to achieve China's dual carbon target. It has ancillary effect for reducing air pollution while regulating carbon emissions since climate change and air pollution share the same origin and homology. Research on how to design the carbon market mechanism in order to maximize the synergistic effect of reducing greenhouse gas and air pollution will have a very important practical impact for China. This study conducts a theoretical analysis of the collaborative emission reduction path of China's carbon market, and constructs an Energy-Economy-Environment (3E) model of the collaborative emission reduction effect of carbon trading system based on System Dynamics. After analyzing the feedback path of the core cycle of the model and verifying its performance, three main policy factors in the carbon market are explored, and their effects under the dual objectives of emission control and economic development are comprehensively evaluated. This study suggests that the exploration of the potential of carbon market for collaborative governance should be accelerated, and ensure the orderly expansion of coverage and precise setting of limits, so as to ensure the smooth achievement of carbon reduction targets while guaranteeing the social and economic development.
Keywords: Air pollution; Carbon market; Climate change; Synergistic management; System dynamics.
© 2023 The Authors. Published by Elsevier Ltd.