Power supply structure optimization and emission reduction potential in power industry based on system dynamics

In this paper, we construct a coupled model of the electricity market and the carbon market to explore the influence mechanisms and coupling effects of carbon emissions trading (CET) on the electricity market based on system dynamics. The model includes three subsystems: carbon emission trading, electricity market trading, and power producer investment and construction. Results indicate that introducing a carbon market can suppress thermal power's installed capacity and encourage renewable energy development. In general, the more mature the carbon market becomes, the more effective it will be at optimizing power supply structures and reducing emissions.