Evaluation Of Carbon Finance Market Efficiency In China

With the continuous deepening and expansion of China's Financial Market,and in order to achieve the coordination and sustainable development of economy and ecological environment,the construction of carbon financial market system is essential.At present,China has eight pilot carbon emission trading markets,located in Shenzhen,Shanghai,Beijing,Guangdong,Tianjin,Hubei,Chongqing and Fujian.With the gradual maturity of these pilot markets,China officially launched a unified national carbon emission trading market at the end of December 2017.Based on this background,this paper evaluates the efficiency of China's Carbon Finance Pilot Markets.Firstly,starting with the literature review and theoretical analysis of Carbon Financial Market and its efficiency,this paper analyzes the research status of Carbon Financial Market at home and abroad as well as explains the basic concepts and related theories.Secondly,the efficiency evaluation index system of Carbon Financial Market in China is constructed.According to the Carbon Financial Market Research issued by the Carbon Finance Working Group of the Green Finance Professional Committee,this paper explains the theoretical framework of the Carbon Financial Market efficiency in China from two aspects: the efficiency of resource allocation and the efficiency of market operation.As a result,we chose six indicators and evaluate the efficiency of Carbon Financial Market in each pilot area by Entropy Weight TOPSIS Method.The results show that the overall efficiency of the Carbon Financial Market in the eight pilot areas in China is ranked as follows: Guangdong,Beijing,Shenzhen,Shanghai,Hubei,Tianjin,Chongqing and Fujian.From the perspective of resource allocation efficiency,the ranking order of Carbon Financial Market is Beijing,Guangdong,Shanghai,Hubei,Tianjin,Shenzhen,Fujian and Chongqing.From the perspective of market operation efficiency,the ranking order of Carbon Financial Market is Guangdong,Shenzhen,Beijing,Fujian,Hubei,Shanghai,Chongqing and Tianjin.Finally,through the empirical results as well as the specific situation of China's Carbon Financial Market,this paper puts forward the corresponding suggestions from five aspects: laws and regulations,system structure,information construction,supporting human resources construction and regional linkage,in order to enhance the efficiency of Carbon Financial Market in China as well as to contribute to the construction of a unified Carbon Financial Market in China.