6. Conclusions and implications
Carbon reduction labeling schemes are regarded as an effective measure to raise the environmental awareness of climate change and thus promote green consumption and reduce carbon emissions. The study presents an evolutionary game model to examine how enterprises respond to a range of governmental incentive policies related to the implementation of a carbon reduction labeling scheme, namely a direct subsidy and a series of preferential tax rates. SD is then employed to simulate the created game model by using scenario analysis based on two scenarios: an individual and a combined policy intervention. Next, a case study of China's air conditioner enterprises is presented, which shows that subsidy and preferential taxation policy significantly influence the implementation of the carbon reduction labeling scheme. In particular, the simulation results show that a direct subsidy given to enterprises is better than one given to consumers. A combination of incentives (i.e. a direct subsidy and preferential taxation) is more efficient to drive the implementation of the carbon reduction labeling scheme. The presented simulation results offer insightful suggestions for enterprises to take actions on their lifecycle-associated carbon emissions to improve product quality as well as move toward low-carbon consumption.
