Abstract: Developing a carbon neutrality roadmap and supporting green finance policy is a multi-objective multi-agent decision problem in nature, requiring an integrated analytical framework that accounts for inherent uncertainties in energy, environment, economy, and finance. This paper provides a review of mainstream modeling tools that have been applied in carbon neutrality studies. We show that these models often lack a detailed representation of the financial sector and are inefficient in capturing the complex interactions between the financial sector and other sectors of the economy, energy systems, and the environment. Moreover, these models cannot incorporate heterogeneity, bounded rationality, and learning capabilities of agents. In this respect, we suggest applying agent-based models(ABM) in future modeling studies and developing green finance policy evaluation tools.
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