| According to the fifth report of IPCC,human activity is the major culprit of global warming.It further noted that if prompt actions are taken,it is still very likely to accomplish the goal of keeping average temperature rising within two degrees.Otherwise,unpredictable disasters may occur.Paris Agreement,which took effect on November 4th 2016,manifested the joint determination of the whole world.In order to meet the requirements of this agreement,countries submitted their targeted independent contribution one after another.Among those countries,Chinese government has made its commitment: First,by 2030,China’s per-unit GDP carbon emission would be reduced to 60%-65% when compared with that in 2005,among which non-fossil energy shall increase to around 20% and that forest reserves increase 45 billion cubic meter compared with those in 2005.On June 18 th 2013,China’s first carbon emission trading platform,Shenzhen Carbon Exchange was set up,which witnessed the official launching of reducing carbon emissions through market mechanisms.Later,other pilot exchanges such as those in Beijing,Shanghai,Tianjin,Chongqing,Hubei and Wuhan have also been put into operation.By September in 2016,the turnover of carbon quotas in pilot exchanges has accumulated to 120 million ton,with the total transaction amount exceeding 32 billion RMB.National Carbon Market is planned to start its trial operation in 2017.The early National Carbon Market will cover eight key industries including petrochemical industry,chemical industry,building materials industry,iron and steel industry,nonferrous metal industry,paper industry,electric power industry and aviation industry.With the coverage of 3-4 billion ton of carbon emissions,National Carbon Market is estimated to overtake European Union and become the world’s largest carbon trading market.Since enterprises with emission control tasks are the key participants in carbon markets,studies of their behaviors and strategies under different assumptions appear to be particularly crucial.This studyaims to discuss and analyze enterprise conducts under carbon constraints from three perspectives: pricing strategy selection of the enterprises under different quota allocation methods,pricing strategy selection of the enterprises that adopt green self-purifying technologies and enterprise conducts under the circumstances of duopoly.This study can be divided into the following sections.Section 1 serves as the introduction,focusing on background,theories,practical significance,relevant literature review,innovative and weak points as well as the general framework of this research.Section 2 is about the basic theories,which relates tonew institutional economics,environmental economics,low-carbon economy,carbon emission trading mechanism and other theories.Section 3briefly reviews the evolution of the allocation system of carbon emission permits.Section 4 generalizes the sorted-out information about the current developments of the pilot carbon markets.Section 5 is mainly concerned with the selection of pricing strategies of a single enterprise under diversified quota allocation methods.Section 6 discusses the pricing strategy selection of a single enterprise that adopts green self-purifying technologies.Section 7 further relaxes the assumption to analyze pricing strategies selection of enterprises under the circumstances of duopoly,given the condition of various quota allocation methods and with green self-purifying technology taken into consideration.Section 8 is the concluding part.The following are the major conclusions concerning concepts of two core allocation methods:In this research,quota allocation methods are divided into absolute quota allocation method and comparative quota allocation method in the abstract.The selection of different quota allocation methods determines the enterprises’ conducts.Absolute quota allocation method(grandfathering)refers to the method that under governmental control on total discharge capacity,quota can be disassembled into carbon emission rights to certain units and initial emission right can be distributed to the economic subjects of carbon emission,ater which free trading on emission rights of these economic subjects can be conducted in carbon exchanges.Absolute quota allocation method,exerting relatively stronger impacts on enterprises,is a general allocation method on international carbon market.However,on the other hand,comparative quota allocation method(benchmarking)can be referred to as a method under which carbon quota is determined by factors such as carbon intensity and output value,which is adopted by countries such as the Netherlands.Under governmental requirement of carbon reducing,comparative quota allocation method is more likely to satisfy enterprises’ needs for growth.In this way,allocation method can meet the needs of carbon reducing as well as economic growth.By analyzing enterprises that adopt green self-purifying technologies and the pricing strategy of products under diversified quota allocation methods,conclusions can be drawn as follows.First,the choice of different quota allocation methods is determined by the expected effects and policies.Absolute quota allocation method is more conducive to emission reduction.In this case,social benefits are greater than economic gains,and it is thus more beneficial for governments to realize their emission reduction targets.However,comparative quota allocation method is pegged to enterprises’ industrial added value.Under this circumstance,the higher the industrial added value is,the larger the quantity of quota is.Governments can restrict enterprises’ behavior to emission reduction without affecting the overall economic vitality and enterprise initiatives.In short,while choosing quota allocation methods,we can set the rules in accordance with policies and expected effects.Second,enterprises’ behavioral choices under environmental regulations.After studying pricing strategies of the enterprises that adopt green technologies,we can draw the conclusion that under additional environmental constraints and absolute quota allocation methods,the major concern for enterprises lies in the comparison of the costs to implement green technologyand carbon price.The relation of these two factors determine whether to implement green technology or not.The amount of absolute allocation quota distributed by government will not have direct influence on enterprises’ conducts on carbon emission.However,under comparative allocation method,carbon intensity distributed by government will directly influence enterprises’ goals of carbon emission.When the cost of adopting green technology exceeds certain threshold,the allocated carbon intensity must surpass a specific value in order to adopt green technology.Besides this,comparative quota allocation method is more conducive to the implementation of green technology among enterprises,however,under the same condition,comparative quota allocation methods is likely to lead to higher carbon emission for enterprises compared with absolute quota allocation method.Apart from this,with the increase of carbon prices,the lower carbon emission is,the higher profits enterprises can gain.This is due to the fact that the opportunity cost for increasing carbon emission is gradually increasing.Third,under sufficient carbon quotas,there is no influence on manufacturers’ carbon emission level by means of reducing carbon quota or changing carbon quota allocation methods.The major influence of enterprises’ carbon emission level and the investment scale of green self-purifying technology lies in carbon emission price.If carbon emission price is too high,chances are,even enterprises with exceedingly high carbon quota,they still will not improve the investment scale of green technology.Fourth,enterprises’ strategic options under the situation of duopoly.When the carbon emission ratio of enterprises adopting green technology is large enough,green technology can effectively reduce the quantity of optimal emission under comparative quota allocation method.Under comparative quota allocation model,the elasticity of enterprises’ choice on adopting green technology is higher compared with that under absolute quota allocation model,which means,the high comparative quota distributed by government is,the more conducive for enterprises to implement green technology.Simply put,enterprises under this circumstance,can bear higher implementation costs on green technology.Fifth,the balance between economic growth and carbon emission under different quota allocation methods.If government would like to achieve its carbon emission goal within the expected date,it is better to adopt absolute quota allocation method.This is due to the fact that under this kind of allocation method,enterprises’ product pricing is higher than that under comparative quota allocation method.Under enterprises’ established value,the relative decline are more likely to reduce carbon emission.On the other hand,if comparative quota allocation method is adopted,it can contribute to the rapidly increasing development of the enterprises.When enterprises’ value booms,there are quotas gained under this method than that under absolute quota allocation method.Comparative quota allocation method can keep quotas from the historical limitations about carbon emissions,so that enterprises with rapid increases can operate under a relatively stable environment and avoid causing more carbon emission costs.In a word,if government needs to take both carbon reduction and stable economic growth into consideration,comparative quota allocation method is the optimal option.Sixth,the amount of absolute quota distributed by government cannot necessarily affect enterprises’ carbon emission.However,under comparative quota allocation method,carbon intensity distributed by government will influence enterprises’ green carbon emission mission.If government would like to encourage enterprises to adopt green technology,comparative quota allocation method is a preferable choice.In follow-up studies,assumptions can be further relaxed to discuss enterprises’ selection of pricing strategies under the condition of monopolistic competition and perfect competition.If micro-data are sufficient,quantitative analysis on the pricing strategy selection of enterprises can be conducted by means of mathematical measurements.The impact of quota allocation methods on strategy selection can then be stripped from the previous quantitative analysis to analyze the effect of different quota allocation methods quantitatively. |
PDF Full Text Request