Analysis On The Imbalance In China’s Carbon Financial Market Institution

The paper applied institution change theory to the study of China’s carbon financial market. Through the analysis of institutional supply and demand framework of our country’s carbon financial market institution,we find China’s carbon financial market institution exist disequilibrium.The reason is our market was at a stage of forced institutional innovation by government in a long time,which is more efficient at the beginning of carbon financial market.However, too much emphasis on the importance of the government led to the lack of subject status of civil society organizations.The civil society organizations will lack of enthusiasm.At the same time, the environmental culture in our country also hindered the development of carbon financial markets.In addition, this paper also built a selection model of the way that carbon financial markets generate,which include the forced institutional generation and the induced institutional generation.Then,I use this model to explain the development of China’s carbon financial market.I find that China’s carbon financial market chose the way of top-down forced institutional innovation dominated by government initially. After 2005, civil society organizations began to initiate a bottom-up induced institutional innovation. Since then, China’s carbon financial market entered a stage that rely mainly on forced institutional innovation while induced institutional innovation subsidiary.Finally,this paper put forward three suggestions to promote the balance of China’s carbon financial market institution,which include transforming the pattern on institutional innovation,cultivating the civil society organizations actively and concentrating on building a low-carbon society. These findings provided a strong support for the improvement and development of China’s carbon financial market institution,they also provided related basis for government to promote the development of carbon financial markets.