Towards Sustainable Energy Systems: The Role of Carbon Pricing in Driving Sectoral Decarbonization and Clean Energy Adoption

Addressing climate change is one of the most pressing global challenges of the 21st century, with the energy sector being the largest source of greenhouse gas emissions. Effective policy measures, such as carbon pricing, are critical for driving the transition towards a low-carbon economy. This study develops a carbon-price-driven model to explore the impact of carbon pricing on energy consumption, <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">$\text{CO}_{2}$</tex> emissions, and sectoral decarbonization under high, medium, and low carbon price scenarios from 2015 to 2060. The results show that a high carbon price significantly reduces fossil fuel use, accelerates renewable energy adoption, and achieves net-negative emissions by mid-century. In contrast, lower carbon prices result in slower emission reductions and continued fossil fuel dependence. The electricity sector is highly responsive, while cement and steel decarbonization progresses more slowly. These findings highlight the crucial role of ambitious carbon pricing in achieving longterm climate goals.