Research On Carbon Sink Transaction Value Of China’s Manufacturing Industry

Facing the continuous and rapid growth of carbon emissions,in order to realize of the vision of the "Carbon Peak" and "Carbon Neutrality",China will continue to promote the full and effective implementation of the Paris Agreement,actively take carbon emission reduction measures during the Fourteenth Five-Year Plan,and basically build a national carbon trading market.However,China’s total carbon emissions still maintain the growth trend and the carbon emissions of China are second to none.Moreover,as an effective means of carbon emission reduction,the carbon trading market is still in its infancy.There are only a few practical cases of carbon sink trading,and there is no unified and effective carbon sink pricing method at home or abroad.Therefore,China’s carbon emissions and carbon trading are urgent problems to be solved,especially in the manufacturing industry.The paper constructs Input-Output Analysis Model and Carbon Sink Pricing Model to calculate the carbon emission structure and carbon sink transaction price of China’s manufacturing industry.Based on China’s competitive Input-Output Table from 2007-2012-2018 and the carbon dioxide emission data of sub sectors,China’s manufacturing industry is divided into 14 sectors,and the direct and complete carbon emissions of China’s manufacturing industry and its sub sectors are calculated.The results show that the overall direct and complete carbon emission coefficient of China’s manufacturing industry show a downward trend,but it still belongs to a high carbon emission industry;Among the manufacturing sub sectors,there are four sub sectors with high direct and complete carbon emissions,including non-metallic mineral products,metal products and smelting calendering,petroleum,coking and other fuel processing,and chemical raw materials manufacturing.According to the Carbon Sink Option Pricing Model,the market price of carbon sink in China is 43.31 yuan / ton,of which the net present value of carbon sink is 41.96 yuan / ton and the option price of carbon sink is 1.35 yuan / ton.Based on the total carbon emissions and carbon sink transaction price of China’s manufacturing industry,it is calculated that the total carbon sink transaction value of China’s manufacturing industry is up to 535.589 billion yuan which shows potential economic value of carbon sink is really considerable;After differentially pricing the carbon sink market price with the Influence Coefficient in the Input-Output Analysis,the overall total carbon sink transaction value of the manufacturing industry increased to 593.357 billion yuan.Among the sub sectors of manufacturing industry,metal products and smelting rolling manufacturing,electronic,electrical and communication equipment manufacturing,chemical raw materials and chemical products manufacturing and non-metallic mineral products manufacturing are suitable for giving priority to carbon sink trading,and the total value of carbon sink trading accounts for 83.85% of the total value in manufacturing industry.However,these four sectors belong to different types.Metal products and smelting rolling manufacturing,chemical raw materials and chemical products manufacturing belong to industries with high carbon sink trading value of direct and indirect carbon emissions;Electronic,electrical and communication equipment manufacturing industry is an industry with low carbon sink trading value of direct carbon emission,but high carbon sink trading value of indirect carbon emission;The opposite is true for non-metallic mineral products manufacturing.The results show that the implementation of carbon sink trading in China’s manufacturing industry can produce great economic value,and carbon sink differential pricing can maximize the transaction value.We should take the lead in developing the four sectors with high carbon sink transaction value in the manufacturing industry,and pay attention to the difference carbon sink trading value between their direct and indirect carbon emission,so as to accelerate carbon emission reduction and push the economic value of carbon sink forward to remote rural areas with rich forest vegetation,and promote the realization of the vision of "Carbon Neutrality" and "Common Prosperity".In this regard,the policy suggestions are as follows: Establish a carbon sink trading market and improve the carbon sink pricing mechanism;Improve the carbon sink trading system and clarify the ownership of forest land property rights;Improve the level of carbon sink technology and improve the operation efficiency of carbon sink;Pay attention to the difference of industry carbon emission and promote the increase of carbon sink income.