Environmental Studies and Forestry

Carbon emissions cap or energy technology subsidies? Exploring the carbon reduction policy based on a multi-technology sectoral DSGE model

J. Gu, Y. Li, et al.

This research conducted by Jianping Gu, Yi Li, Jingke Hong, and Lu Wang delves into the effectiveness of various carbon reduction policies in China. By employing a dynamic stochastic general equilibrium model, the study uncovers compelling insights indicating that subsidy policies may lead to more effective long-term emission reductions compared to carbon caps, with fossil fuel subsidies demonstrating noteworthy cost-efficiency.