| Since 1990, the concept of low-carbon economy is popular among the people. And the key way to develop low-carbon economic is the development of low-carbon technology. Because of the low-carbon technology have spillover effects, the power to innovation of low-carbon technology far away from sufficient. On this basis, to know the function of low-carbon technology and policies measures to develop technology is particularly important.Low-carbon technology refers to the all technology, product or process which can reduce carbon emissions. According to the empirical analysis, from 2003 to 2009 the development of low-carbon technology reduced 1519.51 million tons of carbon. Also the low carbon technology can lead to rise of emerging industry, eliminated the industry with high carbon technology, so as to opt imize the industrial structure, improve the quality of life, to promote the growth of our economy. Therefore, in order to develop low carbon economy, our country should make great efforts to develop low-carbon technology. While the low-carbon technology has exterior effects, the Pigou tax and Coase Theorem provides solutions of external i ty. Tax and subsidy system through giving subsidies for low carbon technology products, carbon trading system to market the resource with clear property right, thus promote low-carbon technology development. Finally the policy and suggestion put forward:using administrative means, the fiscal incentive for low-carbon technology development, increasing government investment guiding the independent research and development of low-carbon technology, strengthening international cooperation and lastly strengthening consumer education.The possible innovation in this essay lies in:firstly, make a definition of the low-carbon technology and divide into low-carbon and economic, low-carbon but not economic these two parts according to the theory of cost and benefit; secondly, through the decomposition of carbon emissions it shows that from 2003 to 2009 the development of low-carbon technology reduced 1519.51 million tons of carbon; moreover, the reason of why the innovation of low-carbon technology is insufficient is that the low-carbon technology with the externality, so the cost-effective inconsistency in personal and social, then proposed the solution, using Finance tax system and carbon emissions trading system. |