Companies’ Behavior of Carbon Emission Reduction at the Risk of Oil Price Volatility

This paper has established an evolutionary game model, and has examined the promotional effect of the rising oil price on companies’ behaviour of carbon emission reduction. The research results show that, the promotional impact of the rising oil price on companies’ carbon reduction behaviour is uncertain. In the case of the rising oil price, the evolutionary result of companies’ carbon emission reduction behaviour will depend on the extent of the rising oil price, the initial status of companies, the saved cost and the revenues from emission permits. At the same time, the percentage of companies who reduce carbon emission at the initial evolutionary period will also influence the evolution direction of the whole group. This paper has showed the relationship between the rising oil price and companies’ carbon reduction behaviour, and it will provide theoretical reference for promulgating rational low carbon policies.