Analysis of the Impact of Carbon Emission Trading Mechanism on the Electricity Market under Dual Carbon Targets

Abstract

To achieve the goals of sustainable development and energy conservation and emission reduction, a model is constructed through system dynamics to explain the mechanism of the carbon emissions trading system and analyze the impact of the carbon emissions trading system on China's electric power based on analyzing the relationship between the carbon market and the electricity market. The role of the market and the simulation of its policy effects it. The results show that the carbon emissions trading system has an impact on the on-grid electricity price, the installed capacity of renewable energy, and the installed capacity of thermal power generation in China's power market. The establishment of a reasonable carbon emissions trading mechanism will have a positive impact on the development of China's electricity market, which plays a long-term and effective role.