A Study Of The Carbon Trading Model Upon Industrial Chain Based On Carbon Emission Efficiency

The Climatic issues have caused a wide-ranging impact in the world. In recentyears, countries in the world have explored the issue of global warming actively. In2005, signatory countries of the “Kyoto Protocol” reached a consensus on greenhousegas emission reduction. They mainly introduced three modes of market mechanism,called as Clean Development Mechanism (CDM), Joint Implementation Mechanism(JI) and international emissions trading (IET), to facilitate carbon reduction. CDMcarbon trading mechanism is applicable to developed and developing countries, JI andIET mechanism mainly applies to developed countries. Under the CDM, the EU, theU.S. and Australia built their own carbon trading system. The carbon trading volumeincreased year by year, the trading amount is less than$30billion in2005. Whileglobal carbon emissions trading volume has exceeded to$190billion in2012.Based on the status quo of China’s carbon trading, there is no nationwide carbonemission trading system. Therefore, the gradual implementation of carbon trading fromthe region to the whole country becomes the direction of the carbon tradingdevelopment. Meanwhile the similarity of inner-industry’s emission reduction in thepast makes it fairer among the same industry. This dissertation studied the carbontrading mode of enterprises in the natural gas and chemical industrial chain based onlifting the efficiency of carbon emission.Firstly, we used the input-output model of carbon emission efficiency to calculatethe existing efficiency of the enterprise’s carbon emission. Then combining with theprediction model of carbon efficiency, we accounted future carbon emissionsefficiency of the enterprise. Thus the increment of the carbon efficiency of enterprisesis established as the basis of carbon trading.Then, this dissertation studied two cases of carbon trading model. The first casereferred to the carbon trading under fixed production, which was on the basis ofemission reductions decided by marginal abatement cost function and the increment ofcarbon efficiency. Then the carbon trading price, the actual emission reductions and the increment of carbon efficiency can be worked out. The second case referred to theproduction cost function, which meant the cost of carbon trading is a part of productioncost, and the optimal production of enterprises was determined by the marginalabatement cost function and increment of carbon emission efficiency. The productionvalue can be increased by increasing the production output, which will promote theincrease of marginal abatement cost. Enterprises pursuing the maximization of theprofits need to keep a balance between cost and production value.Finally, the numerical examples calculated and analyzed the datum referring totwo models of carbon trading, such as carbon trading price, the costs of emissionreduction, profit value, the increment of carbon efficiency. The analysis revealed thatthrough carbon trading, each enterprise can reduce its cost of emission reduction aswell as promote the carbon efficiency.This will help enterprises abide the commitmentsmore actively. It is also found that the changes of increment of carbon efficiencysignificantly impact the cost of enterprise. How to formulate a more reasonableincrement of carbon emission efficiency and make the good use of carbon dioxideemissions in fertilizer production enterprises is the direction for future research.