| China’s industrial economy has developed rapidly, which has resulted in serious environmental pollution. Since the20th century, the world took a variety of environmental management to solve environmental problems. China is also facing serious environmental pollution problems. Especially, coal is the main source of energy in China. The mass emission of SO2leads to acid rain which cause negative influence on economic development, environment, and human body health seriously. The power industry is the main force of the coal consumption in China. The contradiction between economic development and environmental protection will remain acute. Nowadays, China gives out a new thought of environment manage, which is total quantity control of pollution.Emission trading is focused on in the world as a market-based environmental policy. Although the theory of emission trading has been introduced into China, and expanded the pilot work in many cities. Chinese pair of emission trading including theoretical study and practical case studies is still lacking, which leads to the emission trading misunderstood and obscure. Therefore, China has not formed real emission trading market.This paper is intended to China’s power industry study, combined SO2emission trading. Started with the basic theory of emission trading, the author explained the concept, theoretical principles, and described the development and implementation of emission trading in the United States and summed up the references to China through compared for the systems of the United States. Analyzed of the feasibility of the introduction of emissions trading the in Chinese power industry, the author came to the conclusion that China should build SO2emission trading market. Finally, Called for the establishment and improvement of China’s primary and secondary trading market, the emissions trading play a more important role in environment governance in China. |