A Study On The Regulation Of Carbon Emissions

Global warming has become an indisputable fact with the increasing of carbon dioxide emissions. It is related to the political, economic, cultural and other social aspects of global issues. At the same time, it has negative externalities,Therefore, regulation of carbon emissions is important.China has become the first carbon emissions country in the world, at the same time, power sector is the main carbon-emitting sector. On the one hand, most of scholars studied the regulation of carbon emissions from the macro aspect, there is little for a certain industry of China. On the other hand, most of studies about this analyze the single measure only, there is little analyze several regulatory measures together. This paper is a theoretical model for the regulations of carbon emissions of the power sector in China. By comparing the behaviors of the Power Generation Groups and the impact on social welfare under different regulations, the optimal regulatory measure will be found.Power Generation Groups will choose their power behavior according the principle of maximizing profit under any government regulatory measures. There are two methods to make decision:simultaneous choice and sequential choice. By analyzing, the author find that two methods are the same in the qualitative, but are different from each other in the quantitative. Cumulative constraint, per-generator constraint and emission taxation will be analyzed in this paper. By analyzing, the author find that cumulative constraint is the same as emission taxation but better than per-generator constraint. There are two cases while the government formulates regulatory measures:consider the feedback of Power Generation Groups and do not consider. After analysis, the author find that consider the feedback is better than do not consider. And the best method is cumulative constraint or emission taxation.