Research On Trading System Design Of China’s Carbon Emissions

With the development of global industrialization, a large number of greenhouse gas emissions lead to the deterioration of the global climate, seriously threat to human survival and sustainable socio-economic development, governments and the public’s strong concern. People began to re-examine the issue of sustainable development, a new model of economic development from the perspective of economy, efficiency, equity, technology and management. As a developing country, China is not the "Kyoto Protocol" included in the mandatory emission reduction plan, but to establish a carbon trading market system should be put on the agenda.This paper adopts the normative and empirical research to the combination of China’s carbon emissions trading market and the institutional system design from theory to practice ideas and methods. A carbon emissions trading system needs to satisfy three basic conditions:total emissions restrictions, the initial quota allocation of emission rights and the establishment of the trading system. First, comparative analysis, emission reduction experience of the world in terms of trading rules for carbon emissions reduction policies, funding mechanisms, and mode of operation and summarized to provide a reference for the construction of China’s carbon emissions trading system.The feasibility of carbon emissions trading market in our country on the basis of a comprehensive analysis of China’s carbon emissions trading system design, based on project management theory, mechanism design theory and game theory, etc., based on market mechanismscarbon system idea. The introduction of options in the initial allocation of emission rights mechanism, and option pricing theory to the pricing of carbon emissions.In this paper, how to break the two major issues in the total limit failures and transaction failures in China’s past practice of emission rights. Power industry, for example, to build the industry total limit the implementation of the basis of the trading system, perform basic and participatory basis.