Economic and carbon emission assessment of compostable plastics as a substitute for petrochemical plastics: a case study in Yunnan Province

In the context of a circular economy, efficient resource utilization is crucial for promoting sustainable development. This study employs a Computable General Equilibrium (CGE) model to explore the economic and carbon emission reduction benefits of substituting petrochemical plastics with compostable plastics in Yunnan Province. Quantitative analysis reveals that implementing differentiated tax policies and recycling incentive mechanisms can effectively reduce government expenditures by 0.65%, while simultaneously increasing urban and rural residents' incomes by 0.24 and 0.78% respectively, mitigating GDP loss to 0.02%, and reducing carbon emissions by 0.02%. In contrast, directly adopting market-oriented strategies or solely increasing carbon emission prices does not achieve the desired positive outcomes, and may instead lead to industrial losses, increased government expenditures, and reduced resident incomes. In agriculturally dominant regions like Yunnan, effective reduction of total plastics and enhancement of environmentally friendly plastics' ratio should involve comprehensive policy measures including taxes, subsidies, and technology adoption. Simultaneously, society should emphasize and optimize the circular mechanism of production, consumption, and recycling to more effectively confront the environmental challenges posed by the plastics industry, ensuring a balance between economic development and environmental protection, and advancing the goals of sustainable development.