Research on Synergies of Ningxia Electric-Carbon Market

Against the backdrop of the severe challenges of global climate change and the establishment of the "Carbon Dioxide Removal" goal, the study of the linkage and synergy mechanism between the electricity market and the carbon market, as a key policy tool to drive energy transformation and promote green and low-carbon development, is increasingly highlighting its importance and urgency. In this paper, the linkage and synergy mechanism of the electricity-carbon market is discussed in depth, and the trends of the rate of change of electricity price, electricity supply and excess demand of electricity in Ningxia under different carbon emission limitation scenarios are investigated by constructing a system dynamics model. The results show that: 1) from 2025 onwards, with the continuous tightening of emission reduction targets, the higher the proportion of total carbon emission limits, the higher the rate of change of electricity prices; 2) electricity supply shows a growing trend under different carbon emission limits, but the growth rate is affected by the looseness of emission limits; 3) excess demand for electricity generally rises in the early stage of the study, and then tends to stabilise and gradually go downwards under stricter emission limits.