Research On Price Discovery Mechanism Of Carbon Emission Rights Based On Blockchain Technology

Carbon dioxide and other greenhouse gases are emitted in large quantities,and surface temperature is increasing year by year.Energy conservation and emission reduction are urgent tasks.Although administrative supervision and punishment means are feasible but not long-term,they ultimately rely on market-based methods,which has resulted in a carbon trading market.The foreign carbon trading system developed earlier and relatively mature,especially represented by the EU carbon emission trading system.It was established in 2005 and has the largest scale in the world.China’s carbon trading market has adopted a pilot to promote the country,the earliest pilot city of Shenzhen,started in 2013,and other cities have also been running.At present,China’s carbon trading market operates smoothly in a bottom-up,regional-to-national promotion mode.However,each pilot has not yet formed a unified trading rule,which is characterized by scattered and mixed characteristics.Although a national carbon trading market has been proposed,However,the implementation process highlights the complexity and arduousness.Establishing a practical and effective carbon trading market that is consistent with China’s national conditions is not only a major positive effect on solving domestic climate and environmental problems,but also has profound implications for improving leadership in the field of international climate change.The article uses the game theory method to analyze the primary and secondary markets of China’s current carbon trading,and concludes that the current pricing mechanism has obvious drawbacks such as multi-centered supervision,high transaction cost and information asymmetry,which may lead to moral hazard.False reporting of carbon emissions and the formation of multiple carbon prices are not conducive to the unification of the national carbon trading market.The emerging blockchain technology has been proposed to be applied in various fields with the obvious advantages of decentralization and distributed accounting.Although the application in the carbon trading market has not yet matured,some enterprises have participated in investment experimental research and blockchain.The application advantages in energy trading are constantly being proposed.Therefore,this paper tentatively explores the application feasibility of the technology in the carbon trading market,and combines two core technologies,such as blockchain traceability and P2P network,with carbon trading.,to establish a new carbon trading price discovery mechanism.It is concluded that after the introduction of the blockchain,since the information is completely transparent and the carbon emission rights are traceable,in the primary market,the original regulatory system can be greatly simplified,the role of the third-party verification agency can be weakened,and trust can be realized at the lowest cost.Quotas can be issued directly to the company.At this time,for the government,the optimal distribution policy should be to impose strict restraint policies on high-emission enterprises,and implement an easy distribution policy for low-emission enterprises.Due to differences in abatement costs,high-emission costs can be shifted to low through carbon trading.In the secondary market,the blockchain constructs a trading environment for direct purchase of carbon emission rights among enterprises,and because there is no threshold for entry,as the number of blockchain nodes increases,more and more traders,the market It tends to be completely competitive.In the end,the quotation decision of the enterprise follows the principle of marginal abatement cost.Enterprises with higher marginal abatement cost will be eliminated,and finally form a price signal mechanism that encourages emission reduction,mobilize the enthusiasm of enterprises to reduce emissions,and promote enterprises.It is also of great significance for carbon trading to consciously eliminate backward production capacity and achieve economic transformation.The main innovation of the article is to tentatively explore the application of blockchain technology in the field of carbon trading,and combine the current status and future trend of China’s current carbon trading,the principle characteristics of blockchain technology,and analyze the feasibility of application,mainly for China.At present,a unified carbon pricing mechanism has not yet been formed,trying to establish a viable market-based carbon price discovery mechanism to help the early realization of China’s carbon market nationwide.However,due to the many problems in the blockchain technology itself,the application scenarios are less and the application environment is not perfect.In reality,it is still in the experimental exploration stage.