Research On Flexible Global Carbon PricingMechanism For International Cooperation

Since the industrial revolution, greenhouse gas emissions making by human activity kept growing. Now low carbon is becoming a main measure for social transition from industrial civilization to ecological civilization and to alleviate the negative effects of global warming. The conference on environment and development holding by United Nations in1992approved the framework convention on climate change, and put forward principles of stabilizing atmospheric concentrations of greenhouse gases and solving climate change in global. And recently copenhagen climate conference in2009and the "Bali roadmap" passed in cancun climate conference in2010, it is obvious that the main developed countries and developing countries have shown strong political will to address climate change on cooperation. For the development of low-carbon economy and carbon emissions reduction, the world's major countries have set up a corresponding guarantee and policy incentives mechanisms, and the market mechanism is the most important way to improve the greenhouse gas emissions and reduce carbon emissions on a global scale.On the issue of controlling greenhouse gas emissions, how to form a stable and effective international cooperation mechanism is an important issue which gets much attention. The current debate focuses on whether to use a cap and trade or a carbon tax mechanism. The cap-and-trade mechanism proposed in Kyoto protocol has been accepted by most countries in EU and has years of experience on implementation, but at present, some problems exposed, for example, the mechanism will lead to uneven distribution of benefits among countries as well as negotiations problems produced by emission reduction cost allocation, etc. Futhermore, three mechanisms in Kyoto protocol (the international emissions trading mechanism, the joint implementation and the clean development mechanism), only the clean development mechanism (CDM) allows developing countries to participate in international carbon reduction system through cooperation projects.Developing countries such as China and India, due to its high carbon emissions, must be participated in international cooperation to reduce emissions to achieve effective control of greenhouse gas. In such a new international environment, the Kyoto protocol model has shown its limits. On the other hand, implementation scope of carbon tax mechanism is limited,and now it is mainly used in the Nordic countries and Canada, and some individual countries applies only to special industries or enterprises.Large-scale implementation of carbon tax mechanism is inexperienced, and the US-led developed countries do not tend to accept a carbon tax mechanism, thus applying carbon tax mechanism alone to promote a increase of trading business as well as a decline in the cost of emissions trading, the feasibility is not high. Based on this, this paper proposes a new mode of international carbon emissions trading, namely the globally oriented flexible carbon pricing mechanism. The third cooperation mechanism in this paper, taking ccst reduction and economic benefit improvement as the starting point,avoid problems existing in two kinds of cooperation mechanisms mentioned, and it includes four parts:the determination of the carbon price, price incentives mechanism, adjustment rules of price incentives and clean development incentive mechanism.First of all, based on emission reduction mechanism and incentive mechanism in domestic and foreign, this paper analyzes the research status quo of carbon emissions reduction mechanisms within international framework, and from the theory analyzes characteristics and problems of cap-and-trade and carbon tax in systematically. The content of this part also contains classification and basic architecture of emissions trading system. From economicpoint, this paper takes externality of environment problems into consideration of cost and price in trading market. Secondly, this paper studys the existing two kinds of carbon pricing mechanism's application, and summarizes the existing disadvantage of the two mechanisms, and then from the failure of Kyoto protocol and carbon tax reflects the superiority of the third mechanism.Third, the paper presents calculation formula of the national carbon price based on carbon taxes income. The main task of global flexible carbon pricing mechanism is conducting a high carbon price (formed by negotiation).Therefore,the carbon price determination is the key step to the flexible global carbon pricing mechanism. Fourth, from the perspective of per capita price incentives, set up a price incentive payment mode and motivate countries to raise the carbon price in each price level.The implementation of flexible carbon pricing mechanism must be matched up with price incentive mechanism and clean development incentive mechanism to work. Fifth, consider problems may be met in execution, including energy security benefits, executable and political issues, etc.