Research On Efficiency Measurement Of China’s Pilot Carbon Market

In order to actively cope with global warming,since 2013,China has established a number of pilot carbon markets in Beijing,Tianjin,Shanghai,Guangdong,Shenzhen,Hubei,Chongqing and other provinces and cities to actively explore the road of lowcarbon development.However,at this stage,China’s carbon market has not yet given full play to its full role,and there is a large gap between it and the international carbon market.Market efficiency is an important indicator to measure the degree of resource allocation,market information and transaction standardization of a market,as well as an important reflection of the maturity of a market,so it is of great theoretical and practical significance to study the market efficiency of carbon trading market.With the increasingly urgent task of emission reduction in the future,how to improve the efficiency of the carbon market to promote the development of the carbon market and contribute to the achievement of the "30-60 target" is a key issue to be discussed at this stage.This paper first summarizes the theoretical basis of carbon market and the research results of carbon market and its efficiency by domestic and foreign scholars in recent years,and defines the concept of carbon market and its efficiency.Secondly,it compares the current situation of China’s seven pilot carbon markets in terms of their operation and institutional design,and analyzes and discusses the shortcomings of China’s pilot carbon markets at this stage.Based on the previous research and review of carbon market literature,we analyze and discuss the factors influencing carbon market efficiency and the mechanism of each influencing factor,and establish a set of carbon market efficiency evaluation index system based on this,and select and construct carbon market efficiency measurement methods and models to provide a theoretical basis for subsequent empirical research.Based on the research on carbon market efficiency in the aforementioned chapters,this paper further carries out relevant empirical research,deconstructs carbon market efficiency from the definition of efficiency into absolute efficiency from the resource input itself and relative efficiency from the rationing relationship and inputoutput relationship of market resources,and evaluates the absolute and relative efficiency of seven pilot carbon markets in China between 2016 and 2020 through entropy-TOPSIS model and super-efficient SBM model.The absolute efficiency and relative efficiency of the carbon market are measured and evaluated by the entropy-TOPSIS model and the super-efficient SBM model.At the same time,the concept of carbon tax policy is introduced in the relative efficiency measurement to discuss the effect of carbon tax policy implementation on carbon market efficiency enhancement.Through a series of research and analysis,this paper draws the following conclusions:（1）The current situation of development.The legal basis related to China’s carbon market is weak,and the legal binding force is insufficient,thus the promotion effect on the implementation effect of carbon trading policy is weak.In addition,each pilot carbon market generally suffers from poor liquidity,low turnover and turnover;（2）absolute efficiency.In general,the absolute efficiency level of China’s pilot carbon markets is low,and the seven pilot carbon markets have only reached the lower-middle efficiency level,and there is a certain difference in the absolute efficiency level of each pilot carbon market,but the difference has been gradually narrowing in recent years.In terms of subdimensions,Beijing and the southeast coastal region perform better in terms of carbon market system design,while the industrial structure of the pilot carbon markets with a higher industrial structure performs better in terms of market performance,especially in terms of environmental performance and green innovation performance（3）relative efficiency.The relative efficiency of China’s pilot carbon markets are all effective,but there is an unreasonable allocation of resources in each market.From the overall performance,Shenzhen,Guangdong and Hubei carbon markets are better than other pilot carbon markets in terms of the rationality of resource allocation of carbon market inputs,while Beijing and Shenzhen carbon markets are more reasonable in matching the institutional design and market scale compared to other carbon markets,and the scale efficiency level of other carbon markets hovers above and below the effective line.（4）The impact of carbon tax policy on carbon market efficiency.After the introduction of carbon tax policy,the overall efficiency level of the pilot carbon market in the past five years increased by 1.22%,and the pure technical efficiency increased by 4.06%,indicating that the introduction of carbon tax policy can effectively improve the efficiency of the pilot carbon market,and the improvement of pure technical efficiency is more significant among the two.Based on the above findings,this paper proposes the following policy recommendations in terms of optimization of institutional design and market performance improvement:（1）promoting the construction of the legal system of the carbon market;（2）optimizing the price discovery mechanism of the carbon market;（3）promoting the linkage development of multiple emission reduction policies;（4）strengthening the integration of the carbon market and green finance;and（5）creating a favorable environment for the operation of the carbon market.