Collaborative Optimization of Carbon Pricing Policy and Innovation Investment for New Industrialization

Carbon pricing policy is the core market mechanism for realizing the dual carbon goal, and innovative development is the internal driving force for promoting new industrialization. How to collaboratively design carbon pricing policies and innovation investment policies to accelerate the green and low-carbon transition of the industry is a key issue in the process of achieving new industrialization in China. This paper constructs a new dynamic computable general equilibrium (CGE) model that includes innovation elements and innovation sectors and focuses on the promotion mechanism of innovation activities for the progress of renewable energy technology and the improvement of energy efficiency in the industrial sectors. Based on this model, it evaluates the policy effects of different carbon pricing policies and various scenarios of using carbon revenues for innovation activities. Combining the main characteristics of new industrialization, the paper carries out the simulation analysis and comparison from several dimensions of economy, carbon emissions, emission reducation costs, energy consumption, electrification level, and level of innovation activities, and obtains optimized policy mix. The results show that by integrating carbon pricing policies with allocating a certain proportion of carbon revenues to the innovation activity sectors and subsidizing wind and photovoltaic power, it is likely to stabilize economic growth, reduce emission reduction costs, increase the proportion of renewable energy, promote low-carbon energy transition, achieve low-carbon growth in the industrial sectors, and advance the process of new industrialization, while realizing energy conservation and emission reduction.