The Construction Of Clean Development Mechanism Trading Pattern Between Provinces In China

In recent years, the greenhouse effect from industrialization brings enormous threats and challenges to the living environment of mankind. The world has adopted "the United Nations Framework Convention on Climate Change" and the "Kyoto Protocol" since the 1980s, establishing rules for the international carbon emissions trading. Clean Development Mechanism (CDM) has become one of the primary means to reduce carbon emissions.With the rapid development of economy, China is the largest emitter of greenhouse gases now. China’s participation in international carbon emissions trading mainly dependents on the international CDM, but with the debt crisis and the controversy of developed countries on emission reduction responsibility, CDM’s outlook is not optimistic. With the expansion of Chinese carbon emissions trading pilot work, a unified national carbon emissions trading market is about to established. How to adapt to our situation needs to be solved during the process. At present, Chinese scholars’ study is mainly on the international CDM trading pattern, but the huge potential risk of that should be of concern. The existing literature gives little attention to the issue about how to give a workable workaround. Most of the existing literature only points out the problem or policy proposals to build China’s inter-regional CDM trading pattern, but does not give details of the construction method.Firstly, development situation of CDM trading pattern is analyzed from both international and domestic angle. The current CDM trading pattern cooperation is proposed limiting between countries, among which EU is the most complete, providing a reference for our country. The development of China’s CDM trading pattern is extremely unbalanced among regions, providing the conditions for interregional model. Secondly, a comprehensive analysis of constructing CDM trading pattern among Chinese provinces is given. The feasibility, necessity, implementation difficulty and potential risks of inter-regional CDM trading pattern are analyzed combining with the status quo and the current research.Finally, construct methods of CDM trading pattern among Chinese provinces is put forward, including five aspects, division, steps, architecture, relevant institutions, operational procedures, and policy suggestions are given. In region division of investment and financing model, principal component analysis is used. The empirical research, based on 2014 National provincial panel data, ultimately concludes that in addition to the level of the results of economic development, science and technology development level, pollutant emissions, etc. are also major factors affecting CDM regional distribution. When dividing the region, we need to consider relevant factors. In this paper, the China’s inter-regional CDM trading pattern is put forward, hoping this may release China’s greenhouse gas emission and promote sustainable development of China’s economy.