The Characteristic Of Chinese CO₂Emission And Research Of Carbon Trading Market

Human being’s behavior results in the global warming. With the development of industry, greenhouse effect has threaten the survival and development of human beings. The enaction of Kyoto Protocol marks the revolution that human fight against the climate change. What’s more, the three market mechanism also marks the formulation of carbon trading.China is the biggest energy consumption country in the world and Chinese government presents that China will decrease is per GDP energy consumption in202040%-45%compared to2005. This essay analyzes the characteristic of Chinese CO2emission and Chinese carbon trading market.First, we analyze the Chinese CO2emission and come to a conclusion:China has much coal, less petroleum and natural gas. Meanwhile, coal is the main energy in China, so the energy structure is not reasonable. We can expect that the need of energy in China will increase in a short term, so the carbon emission will increase too.Then, we analyze the carbon intensity in China, Also, We use LMDI method to analyze the carbon intensity from1994to2010. We come to a conclusion that Chinese carbon intensity is decreasing, the factors of energy structure and energy intensity is the main reason for that. Thus, if we want to achieve the goal in2020, we need to optimize the energy structure and decrease energy intensity.Then, we analyze the Chinese carbon trading market. We come to a conclusion that China is the leader in global CDM market. China and developed country both win through CDM. However, there is many problems of CDM in China. The most important one is China does not have pricing power because China do not have a carbon trading market of its own.At last, we analyze the feasibility of Chinese carbon trading market. We think that power industry should be the leading industry to reduce emission. Power industry has some advantages, such as low cost, high contribution to emission reduction and low international competition.