Emissions Trading Research In The Secondary Market

With the rapid development of industria liza tion, environmental problems become more andmore serious , a positive and effective way need to be find in order to promote the economica luse of environmental resources. Because of the emissions trading's environmental qualityassurance and cost-effective features, there are more and more countries and regions using it forthe control of pollutant discharge. Recently , China has also begun a pilot emissions trading, butChina's market economy system is still not perfect enough, so in the process of implementingemissions trading, there are still ma ny problems to be studied. In this paper, based on domesticand international environmental issues, research what will be happen on the air pollutionemissions trading market.In this paper, first described the concept and characteristics of emissions trading, based ontwo kinds of cost minimiza tion model to establish a linear programming model with a continuousobjective function and a mixed integer programming model with a discrete objective function,and put into the market clearing constraints, then analyze the market equilibrium of two models.Found that the market equilibrium price shall be the shadow price when the linear programmingmodel's objective function is a continuous function , but for the mixed integer programmingmodel,the market equilibrium price equal to the avera ge shadow prices only under certainconditions. Select ing a model which with a continuous objective function as a research tool toresearch what will be happen in our country's cross-sectora l emissions trading market withdifferent initia l alloca tion of emission rights,such as traditiona l initia l alloca tion of emissionrights and a new initia l alloca tion of emission rights.And compare the two kinds of emissionstrading approaches,find that there is a high element of monopoly in the emissions trading marketwith traditiona l initia l alloca tion of emission rights, there is a high degree of competition and amore efficient market in the market with new initia l alloca tion of emission permits.In this paper , researching the emission trading market by the comprehensive use ofmathematics, operations research, economics.The results of in this paper have a guidingsignifica nce for Govemment in the formulation of pollution control policies and their owncompanies or industries in the selection of reduction emission or purchase of emission rights.