Study on the environmental impact of carbon sinks and carbon trading—A governance perspective on sustainable carbon management
Jianfeng Zhang
Royal Agriculture University/Shenyang University/Beijing Luhe International Academy
DOI: https://doi.org/10.59429/pest.v7i1.9470
Keywords: Carbon trading; Carbon sink; Supply–demand model; Regression analysis; Environmental economics
Abstract
Against the backdrop of global climate change, carbon trading markets and carbon sink mechanisms have become vital tools for controlling greenhouse gas emissions and achieving carbon neutrality. This paper takes the carbon markets in the European Union and China as examples and employs economic theories to construct a supply-demand model and a regression analysis model. The aim is to explore how increasing carbon sink supply contributes to carbon sequestration and ecological sustainability. To answer “What influences the market stability and carbon trading prices of the environment when implementing an environmental governance framework with an increase in carbon sink supply?”. The study first reviews the current research on carbon trading and carbon sinks both domestically and internationally, then introduces the research methodology and data sources. Through the development of a mathematical model and empirical analysis, the mechanism of how increased carbon sink supply acts as a carbon sequestration mitigator and thus the policy recommendations are made. The results of the study show that an increase in carbon sink efficiency as a result of well-established governance, and more successful environmental regulations are needed to reach carbon neutrality in the long run by giving policy suggestions for better environmental sustainability.
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