Study On Carbon Transaction Decision - Making Of Subsidiaries In Large Enterprise Group

Environment issues have increasingly become a global concern in recent years. “Kyoto protocol” revising to alleviate the environmental issues, and the Carbon Emissions Trading introduced by the protocol has become an effective approach to curb the growth of greenhouse gas emission. The large enterprise group’s internal emission trading system is an application of regional emission trading mechanism. As the clear organization structure, the group’s internal emission trading system is less complicated, of high efficiency, stable and the management of it is simple. The application of group’s internal emission trading is beneficial to the enterprises to adapt to future global emission trading market. The problems of current emission trading system, such as low market liquidity, enterprises suffering from asymmetric information, will settle within the internal emission trading system.In this paper, under the background of large enterprise group’s internal emission trading system, such as the internal emission trading system of large-scale coal enterprises group, the emission trading decision-making mechanism of the subsidiary is be researched from the microscopic point of view. The first study goal is to decide whether the company will sell or purchase emission allowance in the internal emission market. The further goal is to study how much allowance will the company sell or purchase. Two models are included: one is the analysis of decision-making process of the subsidiary according to the principle of minimizing costs that consists of emissions trading regulatory costs and emission reduction costs; the other one is the optimization of the enterprise’s emission trading decision-making mechanism, the decision of the best carbon emissions according to the principle of profit maximization. Apart from the models, the empirical analysis is indispensable to the research. Datong Coal Mine Group and the subsidiary are the case study objects. The results of the research is that emission trading not only bring economic benefits but also certain social environmental benefits; in order to make an optimal emission trading decision, the company needs to analyze the costs comprehensively, and finding the best emissions will help the company get maximum profit.