Compare And Selection Research On The Initial Distribution Model Of China's Emission Right

Environment is a kind of important scarce resource. Environment problem becomes increasingly severe and restrict the development of region economic in the process of rapid population growing and economic development. Countries around the world are searching for the effective environment policies positively. The current main environment regulation methods include government restriction, emission tax and emission right trading. The implement of emission right trading converts environment regulation from the administration behavior between governments and enterprises to the market behavior among the enterprises, allocating the resources efficiently via the flexibility of market. The USA is the first to use emission right trading to settle the SO2 emission problem and succeeded. Afterward, countries around the world paid high attention to the new environment regulation method, and applied widely in the pollution treatment of CO2, SO2 and COD. The applications proved that emission right trading is more efficient than the traditional administrative instruction. Chinese “12th Five Year Plan” pointed out that we should “improve the paid acquisition of the emission rights and develop emission right trading market”.To establish and improve emission trading system, the first problem to solve is how to determine the reasonable initial distribution model of emission rights. The initial distribution model of emission rights affects the environmental regulation efficiency of emission right market directly, and is the most contentious and hardest issue. The initial distribution model of the emission rights comes down to the interest of the governments, enterprises and societies. The influence factors are very complicated. The initial distribution models include gratuitous and non–gratuitous. The gratuitous one meets less hindrance in emission right trading expanding, which is the main model applied in China's current emission right trading spots. The non–gratuitous one reflects the principle “who pollutes, who pays”, which matches the emission right trading' intention of internalizing emission's externality better and is social fair. The non–gratuitous initial distribution models of emission right trading include valorization and public auction. The most of current researches on initial distribution model of emission right trading are about a certain model of the three. The comparison of the three models' advancementsand shortages is very few. This essay compares the three models, gratuitous, valorization and public auction to analyze their efficiency, builds models based on the relative theory, give a new initial distribution pattern that is suitable for China based on the features of China's environmental regulation and economic development.Because of the complex of the factors which influence the initial distribution models of the emission right, this issue needs more interdisciplinary research and discussion. It should be one of the future research directions.