The Allocation Of Carbon Emissions Among Industrial Sectors In China’s Carbon Market

With the increasingly severe global warming and other climate change issues,countries all around the world are working hard to deal with these climate change issues.Chinese government has promised to reduce its carbon intensity by 40%–45% in 2020 based on the level of 2005.In order to realize the national carbon intensity reduction target,China has established seven carbon emission trading pilots,and has prepared to establish a unified national carbon emissions trading market.In the initial stage of the unified national carbon market,eight industrial sectors will be covered in the carbon market and the other industrial sectors will be included gradually.This thesis has sorted out the existing researches at home and abroad,it is found that the rational allocation of carbon quotas is an important guarantee for the successful operation of the carbon market.Based on the existing researches,this thesis studies the allocation of carbon quotas among different industrial sectors in the carbon market,taking into account of equity and efficiency principle at the same time.The results of this study will provide the theoretical basis for the government to determine the coverage scope,the access order of the carbon market,the adjustment factor of the industry and other issues.In order to better measure the extent of emission reduction tasks undertaken by each industrial sector,this thesis has constructed a comprehensive reduction index based on three indicators,which are emission reduction capacity,emission reduction responsibility and emission reduction potential.The first two indicators represent the principle of equity,and the latter represents the principle of efficiency.This thesis adopts the entropy weight method to get the objective weights of the three indicators.On this basis,this thesis constructs the allocation model of carbon intensity reduction task and calculates each industrial sector’s reduction task in 2020.The result of this study shows that if an industrial sector has a high emission reduction capacity,emissions reduction responsibility and potential,so the industrial sector should undertake more carbon intensity reduction tasks.The allocation result based on entropy method is more reasonable than that based on equal weight and the emission reduction costs are less.Although the allocation results show that the carbon intensity of most industrial sectors will have different degrees of decline,but the carbon emissions of most industrial sectors will grow to a certain extent in 2020 compared to 2012.Our allocation method will promote the equity and efficiency of carbon quotas allocation.With consideration of China’s current economic situation and industrial background,this thesis has put forward some relevant policy recommendations for the construction of China’s carbon market at last.