The Analysis Of Carbon Emissions Reduction Based On The Transmission Mechanism Of Energy Market And Carbon Market

Global warming is not only influencing people’s daily life, but also affecting thesustainable development of world’s economy. Now countries in the world are tryingto seek the path to conserve energy and reduce emissions. Fossil energy consumptionis the main cause of the rising greenhouse gases (carbon) emissions. So countries needto strengthen the exploitation and use of the renewable energy, partly replacing thefossil energy, and then reducing greenhouse gas emissions. In addition, the UnitedNations Commission on Environment and Development put forward and establishedthe carbon market in order to limit greenhouse gas emissions; it provides a new kindof market-oriented way for carbon emissions reduction. At present, many scholarshave proved that the establishment of a carbon market can reduce carbon emissions,and there are influence mechanisms between the energy market and the carbon market.Therefore, it is very significant for seeking way of emissions reduction to explore theinfluence of different energy market on carbon emissions, and the role of carbonmarket on emissions reduction in different energy markets,This article uses cointegration test to examine the directly affect of the oil priceon carbon emissions, and the influence of the carbon price on carbon emissions. Ituses the state space model to measure the impact of the oil price on the carbon price.And combining with the influence of the carbon price on carbon emissions, it isconcluded that the oil price has indirect affect on carbon emissions. Through thecomparison, it analyzes the role of carbon market in the emissions reduction ofnon-renewable energy market. We have found that in non-renewable energy market,the impact of oil price on carbon emissions is negative. When the carbon market iseffective, the oil market’s indirect impact on carbon emissions through the carbonmarket will be higher than the direct impact. So the carbon market plays a positiverole in the emissions reduction of non-renewable energy market. In the renewableenergy market, it uses the cause and effect diagram and flow chart to depict theimpact of renewable energy market on emissions reduction, in both two cases ofconsidering or not considering the carbon market. The analysis shows that theestablishment of a carbon market does not affect the original reduction factors ofrenewable energy market, such as energy efficiency and fossil energy consumption, however it can carve out some new ways to reduce emissions, the carbon market canplay a positive role in exploring new approaches to reduce emissions reduction onrenewable energy market.Finally, by considering the present status of the energy situation and the carbonmarket in China, this article puts forward a series of reduction approaches which aresuitable for China’s national conditions, such as to establish and perfect the carbonmarket trading system, to control energy cost and improve energy efficiency, todevelop new energy, to implement carbon sinks and other measures, these can providesome important reference for the authorities.