Feasibility Study On Establishing The Energy-Efficiency Trading Market In Shanghai

Energy is the fundamental resource to boost economic growth and social development. In the tenth five-year period, Chinese economy and society has shown great momentum. However, in the process of industrialization and urbanization, overly emphasizing GDP growth, while neglecting energy efficiency and environmental problems, has led to the imbalance between the booming economy and the deteriorating environment. This growth pattern has been undermining the sustainability of overall development in China.In view of the conflicts between economic & social development and environment protection, the authorities have taken different measures to construct a resource-economical society and facilitate the economy-energy-environment coordination. The Eleventh Five-year Plan has set a constraining target on energy use: by 2010, the energy consumption per unit of GDP in China must be reduced by 20% compared with the end of the Tenth Five-year. This constraint on energy use has made it clear that it is of utmost importance and urgency to improve energy efficiency during the Eleventh Five-year Period.This dissertation paper chooses Shanghai as the subject, since Shanghai is not abundant in energy resources. In the course of industrialization and urbanization, Shanghai is faced with the problem of achieving economic growth and complying with the Eleventh Five-year's energy-efficiency target simultaneously, which needs to be carefully handled by the authorities in Shanghai. Different measures, economic, legal and administrative, should be taken contingently. Aside from legalization and optimization of industries, it is advisable to adopt effective energy-efficiency schemes such as establishing a cooperative energy-efficiency trading platform, which enables eligible energy-efficiency entities to stand out and meet the energy efficiency target while eliminating unqualified entities. Thus, it will help to increase economic efficiency and raise the awareness of all the parties concerned on the matters of environmental protection and greenhouse gases emission reduction.