The Research Of China’s Carbon Market Price Change

Under the background of advocating low carbon development both at home and abroad, establishing a carbon trading market has been an important way for various countries to reduce social cost of carbon emission reduction and develop low carbon economy. After several years of explor ation, our country has established seven pilot carbon markets in two provinces and five cities. In order to realize the emissions reduction commitments of our country, establishing a unified national carbon market becomes an extremely urgent task.The pilot carbon markets implement different carbon management methods and the quota allocation, and the market situation are not the same as carbon trading volume and turnover six to one, which make great obstacles to establish the unified national carbon market. This article starts from the theoretical analysis of carbon trading market mechanism and discusses the main factors which influence the price of carbon trading, to stabilize the price of carbon trading and provide theoretical basis for building a unified national carbon market. Under the premise of combing deve lopment situation of The EU Emissions Trading Scheme, Chicago C limate Exchange and Japan’s carbon trading system, this article gains good experiences from three foreign mature carbon markets. Besides, this article compares and researches the domestic market mechanism and running situation of the seven pilot carbon markets. By using the regional carbon trading price as sample, this article uses the family of GARCH model to discuss the carbon market price volatility and the changes trend on the view of the empirical analysis, found that the carbon trading price of Shenzhen and Hubei province carbon market have the ability to reflect market information to some extent.Based on the research above, this article combines the experiences of Shenzhen and Hubei province carbon market and puts forward the corresponding policy recommendations to solve the main problems existing on building the unified national carbon market. The policy recommendations include formulating a focused differentiation market mechanism according to the main objectives and tasks of each phase of the carbon market, unifying the coverage area of carbon emissions management by considering the regional carbon market management system, transfer ring the maximal quota to allocated quotas fairly, establishing multi- layer carbon financial market sys-tem to promote the stability of carbon financial prices and improve the enthusiasm of enterprises to participate, regarding carbon emissions quotas as a kind of enterprise production resource rather than the examination index across the city management, improving the liquidity of carbon emissions, perfecting the legal protection, policy support, market regulation and other supporting security system.