Research On Strategic Choice Of Corporate Emissions Based On Emissions Trading System

As an important environmental economic policy,emissions trading is promoted in more and more countries and regions. It can be said that the emissions trading provides a new platform for market competitive decision-making. while how enterprise to make a reasonable strategic choice in the new market environment is the focus of this paper. From the business point of view, based on the theory of the business strategy, this paper analyzed strategic factors in the emissions trading market, and build strategic choice decision-making model for the enterprise. Specifically, this paper include the following:(1)The background of the subject is expounded, including serious environmental problems in China, environmental economic policy creation and evolution. State that coordination of environmental regulation and market incentives is an important way to solve environmental problems and guide technological innovation. The relative literature are reviewed about the initial allocation, market trading and the three most impact of emissions trading on enterprise behavior. Furthermore, significance of the subject as well as methods, contents, main thoughts and innovations are also discussed formally.(2)The theory background of the subject is expounded, including the theory of allocation of environmental capacity and market theory, emissions trading theory, general theories of enterprise strategy. Exploring the theory of origin of emissions trading to further explain the efficiency of emissions trading, and then combined with corporate strategy theory to give the framework of the study.(3) Based on analysis of emission trading market, there are two strategic environment factors including the external environmental factors and internal environment factors. Based on the results of previous studies, external environmental factors included transaction costs and transaction prices; internal environmental factors included marginal cost of pollution control and geographical factors. And defined clearly the impact on enterprise strategic decision and from external environmental factors and internal environmental factors through data analysis.(4) Based on the different strategic environment in the emissions trading market, enterprise strategy will be divided into short-term business decision and long-term decision making by period. This part also select different strategic factors as a model variables by types of decision-making. In the short-term decision making, enterprises'emission decisions come from model. Competitiveness of enterprises depends on two key factors included productivity and the marginal cost of pollution control. In the long-term decision-making, this part discussed the key factors through analyzed the Nash equilibrium model. Conclusion is emissions per unit of product is a key factor in achieving sustainable development in long-term decision making.(5) According to the model conclusions, this paper discussed the future on the current difficulties in the green technical innovation. Specifically discussed different spillover effects of the strategic choices in the different stages of emissions trading market, including the incentive about end of the treatment technology by business decisions and the higher levels of incentive effects incentive effects about green technology innovation by business strategic choice.