How the synergy effect between renewable electricity deployment and terminal electrification mitigates transportation sectors' carbon emissions in China?

Renewable electricity deployment and terminal electrification are among the most-frequently mentioned carbon mitigation polices. However, the effectiveness of these policies and the interplays between them in reducing transportation sectors' carbon emissions in China are still poorly understood. Using a computable general equilibrium model, this study evaluates the effect of renewable electricity deployment and terminal electrification on transportation sectors' carbon emissions in China and reveals their synergy effect. It contributes to the existing literature by revealing how the synergy effect enhances the carbon reduction effects of renewable electricity deployment and terminal electrification in transportation sectors. This study finds that renewable electricity deployment has a double-dividend effect in reducing carbon emissions in transportation sectors and improving their output value, with significant sectoral heterogeneity. Terminal electrification reduces carbon emissions in all transportation sectors, while it causes some damage to their output value. The synergy effect between these policies would enhance the double-dividend effects of reducing transportation sectors’ carbon emissions and benefiting their output value, especially for those with lower electrification rates. Only the synergy effect would mitigate 7.62–42.88 Mt CO₂ of carbon emissions in transportation sectors by 2060, accounting for 1.69–9.53% of total carbon emission under the baseline scenario. We suggest that this synergy effect should be recognized as a key strategy for reducing carbon emissions in the transportation sector.