Study On Emission Trading

With the rapid development of economics, the growth of the industrial pollutant discharge is clearly faster than the economic growth. In aspect of the measures against environmental pollution, people improve technical skill through advanced scientific and technological improvement; on the other hand, people are seeking rational system mode to balance the interest between society and enterprises to achieve the win-win situation. Compared with the traditional "command-control" method the emission trading can achieve the environmental aid with less cost. It can control the pollutant efficiently and use the volume of the environment entirely. Emission trading is an environmental economic policy which depends on t he market mechanism. Emission trading system is a kind of economic management to control environment pollution with market patterns. It is successful in controlling the pollutant emissions and reducing the cost of environmental. This makes the environmental protection and the economic development coordinately. In recent years, with emission trading promoted in the world especially used in the pollutant treatment of China, the economic result and the social benefit was improved. Therefore author makes some suggestions and advices on the above topics in this article.Besides the introduction and the conclusion, the paper includes four parts:In the first part of the article, the author mainly discusses the general situation of emission trading, such as definition, specialty and meaning of right of emission and right of emission trading. Right of emission should be understood as that polluters should emit legally in the governmental allocating arrange and without damaging the benefits of others. The actual aim of the trading is that only by meeting the needs of the local environment, could the trade carry on. It's of efficiency, low cost, helpful to reach the standard and promoting economic development, convenient to total amount control. At the same time, author thinks that emission right has both economic value and ecological value, as a mixture of two values. The second part investigates the possibility and actuality of Emission trading. First of all, it expresses evaluation of the trade's economic effect, environmental effect and social effect. Combined with the reality of social development and protection of environment, the former system is not adapted to the current situation. Secondly, by using the economical analysis, the theoretical basement and the values of emission trading. Author employs Pigou's theory to analyze the inner reason why economical entity unwilling to invest in the field of environmental protection. From the theory of"the tragedy of the commons", the author analyze the conflict between the limitation of environment resource and the maximize interests of enterprises, that Inducing the tragedy of environmental pollution. Next discusses the external cause of the emission trading appearance from the environmental function and capacity scarcity. Finally, bases on theories of "Coase theorem"author works at the different efficiency of resources distribution from different definitions of right.Part two, the study of development of emission trading abroad. In this part, the author takes emission trading in America for example to analyze the advantages of the emission trading in the society, enterprises, government and technology innovation and to point out the disadvantages in the cost, fairness and speculations. Then introduce the main emission trading policy includes compensation policy, bubble policy, emission bank, capacity surplus policy, and these form a fairly complete emission trading system. The author's conclusion is that the advantage of emission trading is more than the disadvantages. So the legislation on emission trading in China can refer to the America's.In the three part, author mainly analyses the rise of emission trading in China. First and foremost, emission trading is separated according to kind of pollutant, as sewage, sulfur dioxide and carbon dioxide. For emission trading of sewage, author discusses the development process; develop mode and its key characteristic. For emission trading of sulfur dioxide, author pays attention to the urgency of practicing emission trading and the coordinate mode between China and America. Furthermore, summaries the developing trend in further and characteristic of emission trading of carbon dioxide through the analyses development process.Part four analyses the establishment of emission trading, includes two sections. At present, the emission trading market is divided into two different levels, author focuses on pollution discharge declarations and registrations system as well as pollutant discharge licenses system in the first level market. In section two, author argues the foundation for establishment of second level market. And takes emission trading of sewage for example to introduce three principle of system. Then combines the situations in China, separates the system into 8 parts, there are indicators of emission trading, subject of emission trading, contract of emission trading, period of emission trading, way of emission trading, and management of emission trading, author also make some helpful suggestions for the above problem.In conclusion, author sets forth two important questions about emission trading. First one is the legislation. It is necessary to establish emission right and nationwide regulations to unify standard in China. The author designs the main rules which include affirming the legal pollution permits, introducing systems on the emission trading of the America, regulating market and strengthening the government's supervision. At last, author believes that emissions trading have many drawbacks, but it can make up them. China has the foundations to apply the emission trading, but problems in the technology, market, government and legislation need be resolved first. The author argues that if the system of the emission can be carried out successfully in China, it must co-operate with the other economic instruments. We should strengthen local environment legislation and define the function of environmental protection authority. Adopt a prudent policy of emission trading.