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January 18, 2026Journal of Advanced Transportation2 citationsOpen Access

A Game‐Theoretic Analysis of Carbon‐Trading Mechanisms: Strategic Interactions Between Government and Liner Shipping Companies in China’s New Western Land–Sea Corridor

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SCSi ChenYZYifan ZhangQZQian Zhang

Key Points

  • The study aims to explore strategic interactions in carbon trading between government entities and liner shipping companies.
  • Developed a theoretical model incorporating evolutionary game theory and multiround auctions.
  • Analyzed the dynamics between governments and shipping companies in carbon trading.
  • Identified optimal cooperation scenarios and auction designs for carbon quotas.
  • Government intervention is key for effective cooperation in carbon trading.
  • Optimal number of auction rounds identified as 10 under government intervention.
  • Carbon quotas, subsidies, and penalties significantly impact trading outcomes.

Abstract

The transportation sector is a major contributor to global carbon emissions; however, the high costs of infrastructure and equipment present significant barriers to effective emission reduction. As a market‐based mechanism, carbon trading improves the efficiency of emission reductions and facilitates the integration of the transportation sector into the global carbon mitigation framework. Incorporating land–sea intermodal strategic corridors into the carbon‐trading market remains a critical challenge, particularly due to insufficiently explored game‐theoretic mechanisms between governments and liner companies. This study develops an integrated theoretical model combining evolutionary game theory with multiround auctions, uncovering the dynamic strategic interactions between governments and shipping companies in carbon trading. It provides a novel analytical framework and an empirical basis for carbon quota allocation in the New Western Land–Sea Corridor. The main findings are as follows: (1) government intervention is essential for achieving optimal cooperation between governments and liner companies; (2) under government intervention, the optimal number of carbon quota auction rounds is 10; and (3) factors such as carbon quota levels, subsidy amounts, and penalties significantly influence the game outcomes, with carbon quotas being crucial for ensuring the smooth operation of carbon trading. These findings not only address the challenges of integrating carbon‐trading mechanisms within the land–sea transport corridor but also offer transferable insights for policy design in similar global corridors (e.g., the Trans‐European Transport Network (TEN‐T) and the International North–South Transport Corridor), underscoring the necessity of synergistic integration between market mechanisms and government regulation.

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Cite This Study

Chen et al. (2026) studied this question.

synapsesocial.com/papers/696c7835eb60fb80d139665dhttps://doi.org/10.1155/atr/1522273
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