Analysis On Influencing Factors Of Carbon Emission Rights Price Environmental Regulation

Global climate change is one of challenges for human sustainable development.How to cope with the emission reduction pressure has become a growing concern of all sectors of society.Industrial enterprises mainly participate in emission reduction through carbon trading.They need to purchase a certain amount of carbon emission rights in the carbon market to achieve the emission reduction target.The price of carbon emission rights is the barometer of carbon market and affected by many factors.By reading the relevant literature,I discovered that most scholars limit their choice of influencing factors to the traditional factors such as energy price,macroeconomics and climatic conditions but ignore the environmental regulation.So this paper takes environmental regulation as the non-traditional variable to analyze the impact of traditional factor and non-traditional factor on the price of carbon emission rights.This paper combines theory with practice and uses Vector Auto Regression(VAR)Vector Error Correction(VEC)model to analyse the influence.The first part explains the research background,research significance,literature review,research ideas and innovations;the second part introduces carbon emission rights and carbon trading,firstly,it elaborates the attributes and characteristics of carbon emission rights,what’s the price of carbon emission rights,then analyses the carbon trading institutions,systems,products and markets,finally explores the current situation and existing problems of the carbon market;next part analyses the core explanatory variables,the connotation of environmental regulation,the reason of choosing it and elaborates the dynamic influence on carbon price from four aspects;then summarize the measurement methods of it and make a general summary for this part.About the forth part,firstly analyse the influence of traditional factors based on six aspects;then combine the core variable with traditional variables to explore their impacts on carbon price.The traditional factors in this paper include BSPI(Bohai-Rim Steam-Coal Price Index),CSI(China Securities Industry)Index,CSI 300 Index,European carbon index,AQI(Air Quality Index);the core explanatory variable is the amount of air pollution prevention and control equipment of Tianjin.The results show that the quality of air,foreign carbon price,microeconomics and the amount of air pollution prevention and control equipment have positive impact on carbon price;the price of energy and financial market have negative impact;financial market has the greatest impact,followed by microeconomics.The environmental regulation has a certain impact but is less remarkable than the other factors.Finally,some suggestions are put forward according to the empirical results.For environmental regulation tools,the government should formulate appropriate environmental regulation policies according to local characteristics and make appropriate use of the "inverted mechanism";for carbon finance,develop diversified trading products,enhance the transparency of financial markets and focus on solving the problems of asymmetric in investment and financing information;for the government,issue environmental tax policy and adopt risk compensation,credit guarantee;for the law,reward and punishment should go hand in hand,clarify the responsibilities and penalties of emission reduction enterprises.