Study Of Emissions Trading Problems

Emissions trading permits the polluting firms to trade their pollution rights, on the premise that environment capacity is limited. It is a cost-effective means for reducing pollution, and can well harmonize the relationship of economic development and environment protection. As a new policy, emissions trading is an innovation. The design and implement touches upon the field of social and economic life, needs a great quantity of endeavor.Emissions trading has been carried out in America for about twenty years. During this course, many successful cases has appeared, which can be useful for China. However, there are many unsuccessful cases, too. In order to avoid the same case, we should take it for care. Besides the learning of particular cases, the more important learning we should get from America experience is haw to build the institution.Because of the different conditions, the emission trading policy of China cannot be the same as the America's. It should take consideration of Chinese characteristics. The main differences between China and America in establishing emissions trading system are shown below. The construction of socialist market system are not still on. A great number of pollution sources are small and dispersed. The government expected to perform an important function in emissions trading system is not strong enough. With the problems in mind, the process of establishing the emissions trading system is destined to be difficult.However, there are advantages for China, too. Emissions permission system is very important policy foundation for emissions trading. It's lucky that we have gained a lot of experience form the permission system, which can greatly reduce the cost of establishing the new system. The market system becomes more and more complete. More and more people accept the idea of sustainable development. All which forms favorable conditions for emissions trading. In concluding, it's feasible for China to carry out emissions trading. The only problem is that we will be confronted with more challenge during the course. In the light of Chinese characteristics, the suitableemissions trading systems should include the following factors: establishing a market, which is distinguished by environment capacity and should include both point source and nonpoint-source. Organizing a powerful and corresponding government. Creating favorable external conditions, including legal conditions, firm conditions, finance conditions and policy conditions.A good policy should not only be designed perfectly, but also can be easily accepted by current policies. An important thing in expanding emissions trading is to make it work well with the current policy system, so as to reduce the resistance of reform and receive the policy aim easily. So, it's unnecessary to replace the current policies with emissions trading. On the contrary, in order to achieve the environment aim more efficiently, the current policies should still perform and important role.Emissions trading will not be established soon because of the special policy decision procedure of China. Practically, the system may be spread over the country by being tried in some cities at the beginning. In fact, a few cities have tried it already. Shanghai is the first example and has gotten important learning, which will be helpful for the further experience. However, there are still some problems. For example, the total scope is too small. The trading area is not integrated. The marketing degree is still too low. In the article, I have pointed out that it's important to construct the trading market within the whole river basin. At the same time, the corresponding government system must be founded. It's also necessary to improve the "Total Quantity Control" policy. So that it can make the emission trading system in Shanghai improved and spur the implement in China.