The Establishment Of Carbon Emission Futures Market In China

With the development of our society, the total amount of carbon dioxide emission isgetting larger and larger, and the sustainable development of human beings might beseverely influenced. All the nations around the world shall take action immediately,accelerating the progress of energy saving and emission reduction and reducing the amountof carbon dioxide emission.Centered on the subject of carbon dioxide emission reduction, the paper’s analysis isaimed at establishing a futures market that suits for China’s national condition. The essaystarts with the basic theory of carbon dioxide emission permit market, then introduces thehistory and status quo of foreign carbon dioxide emission permit markets, including thecarbon dioxide emission permit trade scheme of European Union, US and Australia. Fromthe perspective of research content, issues such as permit allocation of the schemes,operation details and features are presented.Based on the research of foreign carbon dioxide emission permit market, the essayconducts SWOT analysis of China’s carbon dioxide emission permit market. And then theessay discusses the necessity and meaning of establishing futures market for carbon dioxideemission permit in China.The main part of the essay takes EU ETS as an example for an empirical analysis.With the futures contract price data and spot price data from European Climate Exchangeand relative websites, the efficiency analysis of EU carbon dioxide permit futures market,the price discovery function of futures market and the connected effects of different futurescontracts are conducted.In the end, the essay discusses the realistic problem, such as how to establish thecarbon dioxide emission permit futures market, how to initially allocate the carbon dioxideemission permit and how to design the proper futures contracts in China. At the same time,the essay puts up some suggestions for the establishment of China’s carbon dioxideemission permit futures market and concludes that sustainable policies must be emphasizedso that market participants can have a steady expectation of the market. With the relativeconcrete basis of carbon dioxide emission permit spot market in China, our governmentshould seek the right opportunity to implement the futures market during the process ofperfecting of our carbon dioxide emission permit spot market at the coordination ofdifferent administrative department.The essay adopts qualitative and quantitative analysis and proceeds in-depth analysison the subject of establishing carbon dioxide emission permit futures market in China based on the combination of theoretical and empirical research. The specific methods areempirical study and comparative study.