Research On Flow Path And Pricing Of Carbon Emission Rights Trading In Chinese Transportation Industry

China has promised to reduce 40% to 50% of carbon emission for per unit of GDP in Copenhagen Climate Meeting in 2009. The specific target requires that we should take effective measures to control carbon emission in the in the key industry. The carbon emission of transportation industry in only smaller than energy industry and it consumes 30% oil of the whole society. Carbon emission trading (CET) mechanism has been approved to be useful in western countries. Therefore, it has an extremely important significance on how to build a CET mechanism in Chinese transportation industry so as to encourage China to achieve the goal of reducing carbon emission.This paper gives an in-depth analysis and research on the flow path and pricing of CET in Chinese transportation industry. First of aii, it analyzes the necessity and feasibility of trading carbon emission rights in Chinese transportation industry. And then it gives the main bodies of CET and the relationship between them. Furthermore, the paper draws the flow path pictures of CET in Chinese transportation industry. Secondly, it builds models to deeply analyze the pricing of CET in Chinese transportation industry which is the key problem. Thirdly, the paper takes Chinese railway freight transportation market as an example. It builds a model of Chinese transportation market with a CET mechanism in it. And it analyzes the impacts the CET mechanism has on Chinese transportation market. Finally, the paper concludes some policy for trading carbon emission rights in Chinese transportation industry.This paper has the following innovation value. First, it is more targeted to chooses the transportation industry as the research object. Second, it modifies the auction model with adding the risk attitude of the bidders and trading cost into it, which is more practical. Above all, it concludes some effective policies based on the results the model produces.