Cost-benefit Analysis Of Carbon Trade In China

Since the industrialization,the problem of environment and energy has become an important issue in the process of economic development.With China’s rapid economic growth and rapid rise,China is becoming the world’s second largest economy,while it is also the country with the largest energy consumption and the highest pollutant emissions.Globally,China has been increasingly likely to be obligated to tackle the global environmental pollution and reduce green house gas emissions.This paper measures the shadow price of CO₂of the 27 double-digit industrial industries in 30 provinces in 2001-2014 by using the method of directional output distance function and stochastic frontier.Then we proves the huge potential of China’s carbon trading and the possibility of achieving economic and environmental benefits through multi-dimensional carbon trading simulation analysis.The empirical results show that the average value of carbon dioxide shadow price is 1402.24 yuan/ton;Through the multi-dimensional analysis of the six high-energy-consuming industries and the national level in the pilot provinces of China’s carbon trading,the space for benefiting carbon trading was demonstrated in detail;Finally,the relevant thinking on the construction of carbon emission trading market is put forward in this paper.