Game And Econometric Analysis On International Carbon Market Competition

In recent years, carbon emissions trading market is playing an increasingly important role in controlling greenhouse gas emissions. Many countries are actively exploring and promoting the carbon emissions trade, establishing national or regional level carbon emissions trading system, so the international carbon market competition is becoming increasingly fierce. This article focuses on theGame Theory andEconometrics Research on competitive strategy and effectiveness of the international carbon trading market.This article concludes thatthe competitive nature of international carbon game process is a game between developed and developing countries. First, according to Paris climate conference process and background knowledge, we propose four international carbon reduction game models for developed and developing countries on specific issues,computing benefits on both sides and benefits from globalsystem under four modes. By comparing the results, the game cooperation mode which means developed countries pay off, is a win-win way. Developedcountries should have the ability to provide capital and advanced emission reduction technology to developing countries.Second, estimate efficiency of carbon emission reduction among China, the EU, the US, Japan and Australia with the help of DEA-Malmquist index model, in general the carbon emissions trading system can promote carbon emission reduction, and then by comparing the results of the reasons of behind.Third, using Matlab and Eviews software to do Joint Wright variance ratio teston EU greenhouse gas emissions trading system, analysis that the effectiveness of carbon trading market has staged characteristics, thus ensuring policy effectiveness and sustainability of international is the key to the effective operation of the carbon market.Similarly, analysisthe Chinese carbon trading piloteffectiveness,sum up Shanghai and Guangdong pilot are the weak-efficient markets which has an important reference value in Chinese market establishment.Finally, we propose recommendationsfor the construction of a unified carbon market, such asbuilding total floating control objectives, improving carbon disclosure and legal systems, establishing an incentive mechanism, etc.