Influence of carbon emission reduction of enterprises on economic growth under climate warming
Global warming, as the main feature of the climate problem, is gradually coming into our field of vision. Under this background, Poisson jump is applied to describe the arrival of natural disasters caused by global warming. Households and firms can dynamically update their beliefs about the arrival...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Systems Science & Control Engineering |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/21642583.2023.2288163 |
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| author | Liang Li Jingya Li Haifeng Pan Weiyin Fei |
| author_facet | Liang Li Jingya Li Haifeng Pan Weiyin Fei |
| author_sort | Liang Li |
| collection | DOAJ |
| description | Global warming, as the main feature of the climate problem, is gradually coming into our field of vision. Under this background, Poisson jump is applied to describe the arrival of natural disasters caused by global warming. Households and firms can dynamically update their beliefs about the arrival rate of disasters. In order to mitigate global warming, firms pay a share of the cost to reduce the carbon emissions in the process of production. In this paper, we discuss the social planner equilibrium and the competitive equilibrium, respectively, and obtain the Hamilton-Jacobi-Bellman (HJB) equations of value function in both contexts. Then, the equations are numerically simulated, leading to the following conclusions: under the same level of pessimism, investments and values of firms, as well as household consumption, all decrease as the emission abatement rate increases, and the social welfare is almost unchanged compared to the situation without the cost of emission reduction. Furthermore, in order to deal with the short-term adverse effects on the economy caused by emission reductions, the government subsidy is introduced into the model. The results show that, under the same level of pessimism, the government subsidy drives the growth of investment and consumption. The value of the firms that pay the emission abatement has been boosted, and economic growth rate has risen to a certain degree, while social welfare remains almost the same. |
| format | Article |
| id | doaj-art-a80143e77e224cad81493519a0626bef |
| institution | OA Journals |
| issn | 2164-2583 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Systems Science & Control Engineering |
| spelling | doaj-art-a80143e77e224cad81493519a0626bef2025-08-20T02:36:39ZengTaylor & Francis GroupSystems Science & Control Engineering2164-25832024-12-0112110.1080/21642583.2023.2288163Influence of carbon emission reduction of enterprises on economic growth under climate warmingLiang Li0Jingya Li1Haifeng Pan2Weiyin Fei3School of Mathematics-Physics and Finance, Anhui Polytechnic University, Wuhu, People's Republic of ChinaSchool of Mathematics-Physics and Finance, Anhui Polytechnic University, Wuhu, People's Republic of ChinaSchool of Mathematics-Physics and Finance, Anhui Polytechnic University, Wuhu, People's Republic of ChinaSchool of Mathematics-Physics and Finance, Anhui Polytechnic University, Wuhu, People's Republic of ChinaGlobal warming, as the main feature of the climate problem, is gradually coming into our field of vision. Under this background, Poisson jump is applied to describe the arrival of natural disasters caused by global warming. Households and firms can dynamically update their beliefs about the arrival rate of disasters. In order to mitigate global warming, firms pay a share of the cost to reduce the carbon emissions in the process of production. In this paper, we discuss the social planner equilibrium and the competitive equilibrium, respectively, and obtain the Hamilton-Jacobi-Bellman (HJB) equations of value function in both contexts. Then, the equations are numerically simulated, leading to the following conclusions: under the same level of pessimism, investments and values of firms, as well as household consumption, all decrease as the emission abatement rate increases, and the social welfare is almost unchanged compared to the situation without the cost of emission reduction. Furthermore, in order to deal with the short-term adverse effects on the economy caused by emission reductions, the government subsidy is introduced into the model. The results show that, under the same level of pessimism, the government subsidy drives the growth of investment and consumption. The value of the firms that pay the emission abatement has been boosted, and economic growth rate has risen to a certain degree, while social welfare remains almost the same.https://www.tandfonline.com/doi/10.1080/21642583.2023.2288163Climate warmingweather disastercarbon emission reductiondynamic programminggovernment subsidy |
| spellingShingle | Liang Li Jingya Li Haifeng Pan Weiyin Fei Influence of carbon emission reduction of enterprises on economic growth under climate warming Systems Science & Control Engineering Climate warming weather disaster carbon emission reduction dynamic programming government subsidy |
| title | Influence of carbon emission reduction of enterprises on economic growth under climate warming |
| title_full | Influence of carbon emission reduction of enterprises on economic growth under climate warming |
| title_fullStr | Influence of carbon emission reduction of enterprises on economic growth under climate warming |
| title_full_unstemmed | Influence of carbon emission reduction of enterprises on economic growth under climate warming |
| title_short | Influence of carbon emission reduction of enterprises on economic growth under climate warming |
| title_sort | influence of carbon emission reduction of enterprises on economic growth under climate warming |
| topic | Climate warming weather disaster carbon emission reduction dynamic programming government subsidy |
| url | https://www.tandfonline.com/doi/10.1080/21642583.2023.2288163 |
| work_keys_str_mv | AT liangli influenceofcarbonemissionreductionofenterprisesoneconomicgrowthunderclimatewarming AT jingyali influenceofcarbonemissionreductionofenterprisesoneconomicgrowthunderclimatewarming AT haifengpan influenceofcarbonemissionreductionofenterprisesoneconomicgrowthunderclimatewarming AT weiyinfei influenceofcarbonemissionreductionofenterprisesoneconomicgrowthunderclimatewarming |