Study On Pricing Of Emission Trading

The total control system is an important legal system for the pollution prevention and control in China,which is “the gate” to reduce the environmental pollution.As a supporting economic policy of the total control system,emission trading,which is based on high-efficiency allocation of environmental capacity resources in the market economy,is very helpful to reaching the goal of controlling total amount of pollutant emission and reducing the average social cost of pollution control.China has planned that it will construct a national carbon emissions trading market by 2017.Currently,11 provinces and cities,as pilot sites in China,have launched emission trading.However,these provinces and cities don't adopt a unified emission trading method.In addition,their methods to allocate initial distribution are quite different.Thus,there are big gaps among their initial emission trading prices.Obviously,this is disadvantageous to implementation of the trans-provincial emission trading and the emission trading within the drainage basin.Therefore,it's very important to work out an initial emission trading pricing mechanism suitable for regional environment conditions and regional economic development level.In this paper,domestic and foreign emission trading practices were summarized.Then,it was found that pilot provinces and cities in China are faced with many problems in implementation of emission trading such as incomplete supporting laws and regulations and inactivity of overall market trading.Therefore,a number of suggestions were proposed in this paper,including completing supporting laws and regulations,popularizing initial allocation of emission trading price,activating emission trading markets and establishing an integrity system for enterprises with pollutant emission.In terms of initial emission pricing,basic theories of replacement cost method were taken as guidelines.Regional environmental factors and regional economic factors were introduced to construct an initial emission pricing model.According to pollutant emission data and economic development level of Dalian City,the model was used to calculate initial emission rights prices of chemical oxygen demand(COD)of “encouraged enterprises”,“approved enterprises” and “limited enterprises”,which were 7,148 Yuan/MT,10,218 Yuan/MT and 13,786 Yuan/MT,respectively.In all test provinces and cities,the highest initial price of emission right of COD for Zhejiang Province heavy pollution enterprises was 90000 Yuan/MT,while the lower dumping right price of COD in Hunan Province was 2000 Yuan/MT.The prices of initial emission rights of Dalian were within the reasonable range.This verified the rationality of this model.Therefore,this model can provides some reference for implementing emission trading within the drainage basin.In emission standard improvement projects of sewage treatment plants and wastewater reuse projects of thermal power stations in Dalian City,emission trading was used.As a result,the COD of thermal power stations was reduced by 157.68 metric tons annually,while the excessive emissions COD of Quanshui sewage treatment plants was 504 metric tons.Thus,thermal power stations and Quanshui sewage treatment plants became suppliers and demanders of COD,respectively.So,they could submit their supply/demand information to an environment exchange.In the market mechanism,COD princes would change under different practical conditions.According to the initial price of COD,thermal power stations could gain profits of 1.127 million Yuan at least through COD trading.Meanwhile,as Quanshui sewage treatment plants needed additional COD in the emission standard improvement project,they could purchase 3.60 million Yuan of COD.Calculate excessive emissions of the remaining 11 sewage treatment plants Reference to the emission standard improvement projects of Quanshui water treatment plant.In this way,a supply-demand relationship was established.This not only allowed enterprises that reduced pollutant emission to gain profits to improve their willingness to reduce pollutant emission,but also increased operation costs of enterprises that exceeded pollutant emission quota to force them to reduce pollutant emission.In conclusion,emission trading could realize market regulation and optimize allocation of environmental resources.