Research On The Market Development Evaluation Of The Seven Major Carbon Trading Pilots In China

As the largest greenhouse gas emitter in the global economy,the huge pressure on emission reduction enabled the Chinese government to actively implement a low-carbon development strategy.And continue to promote the construction of a domestic carbon emission trading market.The national carbon market has been officially launched at the end of 2017.As the early stage of the national carbon market,the 7 pilot carbon market have been achieved certain staged results.Facing the great challenge of national carbon market officially run,it is important to evaluate and analysis the advantages and disadvantages of the development process of each pilot market.And summarize the pilot experience to provide reference for the national carbon market construction.Specifically,what is the substance of carbon market development degree?How to evaluate and calculate it?What is the level of development degree of the pilot market currently?Through comprehensive consideration and evaluation the development process of the pilot,this not only extends the application of the developmental theory,but also has important reference to the China's carbon market construction and improvement.Therefore,this paper constructs an evaluation index system composed of 31 detailed sub-indexes in three dimensions,such as market size,market efficiency and market financialization.Through analyzing the operation data from 2013 to 2018,the weights of the indexes are obtained.Combined with the previous scholars' research results,this paper makes a comprehensive evaluation for the current and process of 7 pilot carbon:narkets development.Results show that:(1)The stratification of the development of the 7 pilot markets is obvious.By comparing the 7 pilots market development degree,Guangdong,Shenzhen,Shanghai and Hubei is obviously at a higher level,which is related to their "market-orientation".Among them,Guangdong and Shenzhen is focus on the construction of the primary market.Hubei has the most active secondary market.The Shanghai mainly focuses on the marketization of CCER transactions.Relatively,the lower-level carbon market such as Beijing,Chongqing,and Tianjin pilots,they has many restrictions on quota auctions,investment entities entering the market,and carbon financial product development.Therefore this three markets development degree is difficult to improve,and even some pilots have a phenomenon of "high opening and low walking".(2)The lag in the development of the carbon finance industry is the key to restricting the pilot development.At present,the degree of financialization of the 7 pilot carbon markets is generally lower than its own market development level.Especially in the market that development degree is at a lower level,such as Beijing,Chongqing and Tianjin,mainly due to their low degree of financialization.China's carbon market is subject to the division of various pilot markets,limited trading scale,insufficient liquidity and imperfect trading rules currently,carbon financial products and services are relatively limited in both transaction size and influence.The backward development of the carbon finance industry has become an obvious shortcoming of China's carbon market construction in the future.(3)The advantages and disadvantages of-investment entities entering the market are mixed.Some pilot choose a lower threshold for investment entities to expand the size of the trading entities in the pilot market.It has played an active effect to a certain extent,but also leads to a large number of speculative components in the market,resulting in frequent fluctuations in transaction prices and transaction volumes.In fact,the pilot of setting a lower threshold for the entry qualification of investment entities has indeed improved the market activity level,but it has followed the market volatility of this part of pilot is also rising.In general,the opportunities and challenges brought about by the large number of investment entities entering the market coexist.Accordingly,it puts forward following policy recommendations:Focus on the marketization of carbon market,gradually optimize the construction of market auction mechanism and offset mechanism;Increasing construction of carbon finance services and products and vigorously develop over-the-counter transactions;Gradually reduce the entry criteria for transaction entities,while focusing on and standardizing the order of market transactions and stabilizing market participants' expectations.