Study On Financial Support Modes Of China's Low-carbon Economic Development

Development low-carbon economy is another system change of the global economy since after the industrial revolution. It is regarded as a new power source to promote the global economic recovery. As a developing country, decades of high energy consumption, high pollution and high emission model of economic development in China has been seriously hampered sustainable economic development. Data shows that China's carbon dioxide emission has been ranked second in the world only after the United States. China has already entered the ranks of "carbon emitting countries". In this context, low carbon economy is an inevitable choice for China instead of the extensive mode of economic growth. However, due to a large population, China can not simply draw on existing theories of Western developed countries. It must be integrated with the actual needs to establish funds to support low-carbon economic model with China's national conditions.In this thesis, author studies the problem of inadequate funding in the development of low-carbon economy. Author analyses the efforts of developed countries for the low-carbon economic development, such as the United Kingdom, Germany and the United States, and introduces the current development of these developed countries. Then author introduces China's current development status and problems of low-carbon economy, including the dual pressures of economic development and low-carbon development, unreasonable industrial structure, technological backwardness, lack of financial support. Based on the development of low-carbon economy at home and abroad, learning from the experience in developed countries and combined with China's current low-carbon economy, the thesis gives out four kinds of the financial support modes suitable for China's national conditions. The first one is the tax model, which tells how to use funds from a tax to support low-carbon development; the second one is the mode of funding based on CDM projects, which designs operational processes of CDM project; the third one is green credit, which gives out the whole process of application for green credit; the last one is the support model of carbon fund. At the same time, author analyses the advantages and disadvantages of the four modes. The scope of the carbon tax is the most widely used models. The mode of funding based on CDM projects and carbon fund are more suitable for the projects with energy advantages and innovation. Green credit can resolve the financing problem in environment-friendly small or medium corporations. Finally, taking Jiangxi Province for example and through empirical research, author evaluates the level of the city's low-carbon economic development. According to the degree of urban economy and low-carbon development, the cities are divided into four categories and different types of cities should be applicable to different financial support modes.