Author(s)

Cuihua Jia ¹, Luyao Zhang ¹, Wei Shi ¹

Affiliation(s)

¹ College of Geography and Environmental Science, Northwest Normal University, Lanzhou, China

Corresponding Author

Wei Shi

ABSTRACT

Under the goals of carbon peaking and carbon neutrality and the development of a new-type power system, electricity–carbon market coordination can reduce abatement costs and improve energy allocation. Using panel data from six early carbon-trading pilot regions in China from 2017 to 2022, this study evaluates the development and coordination of the electricity and carbon markets through the entropy weighting method, coupling coordination model, and geographical detector. The results show that both markets developed steadily and their coordination generally improved. Guangdong's coordination degree rose markedly and reached 0.80 in 2021, while Hubei remained stable at about 0.60. The other regions were still in a state of basic imbalance. Government intervention remained the dominant driver, while the relative importance of human capital declined. All factor interactions exhibited enhancement effects, including bi-factor enhancement and nonlinear enhancement, especially those involving government intervention.

KEYWORDS

Electricity Market; Carbon Market; Coupling Coordination; Geographical Detector; Driving Mechanisms

CITE THIS PAPER

Cuihua Jia, Luyao Zhang, Wei Shi. Coordination Effects and Driving Mechanisms of the Electricity and Carbon Markets: Evidence from China's Early Carbon Trading Pilot Regions. Information Systems and Economics (2026). Vol. 7, No.1, 153-160. DOI: http://dx.doi.org/10.23977/infse.2026.070116.

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