Emissions Trading System Research

Marketable Pollution Permits(MPP) has been adopted by many countries because of its effectively alleviating the contradiction between the economy development and the environment protection. In China, the solution of the environment problems need MPP and China has the foundation on establishing the system of MPP. While the market economy of China is not very perfect, the system should be carried out gradually which means it should co-operate with other economic instruments, especially with the Emissions Charge.Besides the introduction and the conclusion, the paper includes four parts:Part I, the theoretical basement and the values of the MPP. In this part, the author wants to improve the reasonability of the MPP. First, the economic roots of the MPP mainly include the theories of "the scarce resources " "the tragedy of the commons' "Coase theorem" and "the public choice". Then, the author analyze the values of the MPP, that is, the MPP can realize the people's pursuits on sustainable development, interests efficiency and fairness.Part II, the study of the MPP model. In this part, the author takes the MPP of the America for example to analyze the advantages of the MPP in the society, enterprises, government and technology innovation and to point out the disadvantages in the cost, fairness and speculations . The author's conclusion is that the advantages of the MPP is more than the disadvantages. So the legislation on emission trading in China can refer to the America's.Part III, the applicable necessity and feasibility of establishing the MPP in China. In this part, the author believes that Emissions Charge has many drawbacks but the MPP can make up them. China has the foundations to apply the MPP, but problems in the technology, market, government and legislation need be resolved first.Part IV, the legislation of MPP in China. First, the author sets forth the principles of the legislation. Then, the author designs the main rules which include affirming the legal pollution permits, introducing systems on the MPP of the America, regulating marketand strengthening the government's supervision. At last, the author argues that if the system of the MPP can be carried out successfully in China , it must co-operate with the other economic instruments.The ways of economics analysis and compare analysis are applied in this paper. The creation of this paper is that the author sum up the views of the others and give the suggestions on the legislation of the MPP.