China's Carbon Trading Market to Reshape Electricity Sector, Boost Emissions Cuts
This study looked at how creating a national carbon trading market in China would affect the electric power industry. The researchers used a special model to predict what might happen. They found that introducing carbon trading could slightly slow down the overall economy, with GDP decreasing by 0.08% to 0.52% in 2030. However, in the long run, the negative effect on the economy might go away. The trading could also push power companies to produce cleaner energy. By 2030, emissions could drop by more than a billion tons compared to not having carbon trading in place. This shows that the carbon market could greatly help reduce pollution if quotas are sold in auctions.