Study On Risk Sharing Model Of Paid Use And Trading Of Emission Rights

The paid use and trading of emission rights is one of the environmental economic means for controlling the total amount of pollutants and reducing pollution and cost in China,which can effectively alleviate the contradiction between economic development and environmental protection,and improve the endogenous power of independent emission reduction.However,in practice,most enterprises prefer to purchase only the emission rights necessary for their production in the paid use stage of emission rights,because of the uncertain outlook of emissions trading.If all enterprises do so,the emission trading will not be able to proceed,and there will still be a large number of emissions trading in China,which is characterized by weak participation of enterprises and strong government participation.The secondary market can not be really active.Based on this,this paper draws on the theory of public-private risk sharing from PPP projects,constructed a risk-sharing model by using triangular fuzzy analytic hierarchy process and Shapley value method,considering the factors affecting risk sharing(risk-taking ability,risk-taking willingness and risk-controlling ability)and the ability factors of alliance members.This can enable the government and enterprises to share the paid use and trading of emission right risks,activate the emission trading market.This paper simulate four scenarios("HH" scenario,"HL" scenario,"LH" scenario and "LL" scenario)according to the ability of government and enterprises to reduce risk loss.The method is verified by accounting the paid use and trading of emission rights risk sharing.The results show that:(1)In the "HH" scenario,the "HL" scenario and "LL" scenario,the risk-sharing ratio of government and enterprise is 50.7%: 49.3%,68.6%: 31.4% and 53.4%: 46.6%,respectively.The government can bear a higher proportion of risks because of its strong risk-sharing ability,and can reduce risk losses by 90%,85% and 60%.The "HH" scenario and "HL" scenario have significant cooperative benefits because of their strong risk-sharing ability,so the risk-sharing system can be implemented.Only in the "HL" scenario,the cooperative benefit is 5% less than that in the "HH" scenario because of the poor risk-sharing ability of enterprises.However,in "LL" scenario,because of the weak risk-sharing ability of the government,the cooperative income can only guarantee the reduction of 60% of the risk loss.This shows that in areas where the government's risk-sharing ability is weak,the risk-sharing system can be implemented,but there are also great difficulties,which need the government to do its best.(2)In the "LH" scenario,the proportion of enterprises sharing risk is significantly higher than that of the government,which is 34.8% higher.And the proportion of enterprises sharing risk is 2.07 times that of the government.Enterprises as profit-oriented groups are difficult to accept,risk-sharing policy is difficult to implement,under this scenario,it is not recommended to carry out the system.(3)In the case of a "strong" and a "weak"(reduced loss)scenario,that is,the "HL" scenario and the "LH" scenario,the party that reduces more losses is more risk sharing.In the case that both the government and enterprises have "strong" or "weak" ability to reduce risk losses,the proportion of risks that the government undertakes is slightly higher than that of enterprises,indicating that the overall strength of the government is still higher than that of enterprises,and it can also encourage enterprises to participate actively in emission trading.Taking 31 provinces as an example,we built a comprehensive index system for government and enterprise risk sharing capabilities,and the 31 provinces in China are classified into four scenarios.In areas such as Beijing,Hebei,Shanghai,Jiangsu,Zhejiang,etc.,which belong to the “HH” scenario and the “HL” scenario,the risk sharing system can be implemented due to significant cooperation benefits.However,Shanxi,Jilin,Guangxi,Guizhou,Yunnan and other areas belonging to the "LL" scenario have low cooperative benefits.Although the risk-sharing system can be implemented,there are still great difficulties,which need the government to do its best.Jiangxi,Hunan,Shaanxi and other regions belong to the "LH" scenario.The proportion of enterprises sharing risks is significantly higher than that of the government.As a profit-oriented group,enterprises are difficult to accept.Therefore,the policy of risk-sharing is difficult to implement.Under this scenario,the government should increase its own capacity development.On the one hand,reasonable sharing of risks between the government and enterprises can reduce the risks of enterprises and increase the willingness of enterprises to participate in the emission trading.On the other hand,the government can complete the function transformation from the primary market to the secondary market of emission rights,more energy to supervise the operation of the second-level market,and enhance the enterprise's active endogenous motivation.The research on paid use and trading of emission rights risk sharing in this paper provides an idea for relevant management departments to improve and manage the system,and has certain reference significance.