A Research and Enlightenment of European Union’s Carbon Emissions Allowance Trading Market
|School||Nanjing Agricultural College|
|Keywords||EU carbon emissions trading market "Kyoto Protocol" VECM enlightenment|
In December 2009, the world’s eyes are focused on the issue-"low-carbon economy" in Denmark at the Copenhagen Climate Conference. It becomes the world research on how to maintain a sustainable development for our natural environment. Currently, many countries established their own carbon emissions trading market to solve the problem of carbon emissions. One of the most perfect and most prominent markets is the EU carbon emissions trading market, while China has not yet set up our own carbon emissions trading market. Today, carbon emissions, as an asset with scarcity, are of great importance to countries in the world. Not only because carbon emissions bear the responsibility of environmental protection, but also a reflection of the world’s concern about carbon emissions pricing. In such a climate war, it is worth our consideration of grasping the priority and initiative rights in China. On the basis of the EU carbon emissions trading market, this thesis provides construction proposals for China’s carbon emissions trading market through the theoretical and empirical analysis.This thesis is divided into six chapters; the main contents are as follows:(1) The legal basis and theoretical framework of Carbon emissions trading market, involving the "Coase Theorem", "United Nations Framework Convention on Climate Change" and the "Kyoto Protocol", are the cornerstones of the market.(2) The rational feasibility analysis of EU carbon emissions market, including systems theory study, the relations and the dynamic equilibrium of EU carbon emissions trading prices and its economic variables. From Empirical studies, we can find the impact of the factors to price of EU carbon emissions.(3)This thesis analyzes the advantages and disadvantages of the EU carbon emissions trading market, and analyzes the existing internal and external conditions for China to establish carbon emissions trading market, meanwhile, the framework and challenges Chinese carbon emissions trading market will face.The relevant conclusions, including:(1) Through empirical research, the thesis gets the conclusion that among all factors, the relationship of policy factor and the price of EU carbon emissions trading is high. In short term, mutations of policies and systems would strongly impact the EU carbon emissions trading price; however, from the view of relatively long period, the policies and systems factors just reflect the interim influence. In addition, due to EU’s performance of low-carbon economy, the climbing energy prices will reduce people’s demand, thereby reducing CO2 emissions. As a result, the corresponding price of carbon emissions trading will decline because of falling demand.(2)Through the in-depth study of the EU carbon emissions trading market, we can learn from their distinct authorities, constrained mechanism, and the system of carbon emissions quota allocation system; however, because the market volatility will affect the stability, authorities in China should dialectically deal with the quota issue.(3) After learning the experience of the EU carbon emissions trading market, this thesis illustrates that we should follow the Cap & Trading system, legally recognize the value of carbon emission rights, pilot our own carbon emissions trading market, and reserve the resources of carbon emissions rights as a strategic and so on to establish our carbon emissions trading market.Finally, we draw a conclusion: "a thousand miles begins with one step." EU carbon emissions trading market provides us their experiences. Since ancient times, there is a famous saying:"learn from the advanced technologies in the West in order to resist the invasion of the Western powers." On the stage of the world economy, only China create our own carbon emissions trading market and make more efforts from the perspective of energy conservation, can we grasp the discourse power of carbon emissions.