Research On Designing And Implementation Of Ocean Emission Rights Trading System Of The Bohai Sea Region

Conocophillips oil spill in the last year makes the pollution symptoms in theBohai Sea worse. To face marine experts’ warning “Bohai Sea will die",“The BohaiSea Action Plan” and "The Bohai Sea Environmental don’t work. Practice at homeand abroad proves that emissions trading could effectively control the environmentalpollution, and achieve the optimal level of social welfare. The thesis attempts tointroduce emissions trading system to control pollution in the Bohai Sea. Through thedesign of the Bohai Sea region emissions trading market, the initial marine emissionrights allocation, marine emission rights Pricing for the secondary market andoperation of the market safeguards, in order to help ease pollution in the Bohai Seaand prevent pollution later, hoping to provide a new way of thinking for the controland prevention of marine pollution.On the analysis of the Bohai Sea environment pollution and its causes basis,though game theory, mathematical modeling, optimization theory and environmentaleconomics research tool, the thesis studies the issue about emissions trading system ofthe Bohai Sea region.First, from the attributes of marine environment: public goods, externalities,marine environment property rights’ none clearly defined, and high transaction costsof property rights analysis, the thesis studies the root causes of pollution in the BohaiSea, and analyze the existing environmental policies, and then propose to use theemissions trading to control and prevent the current situation of pollution in the BohaiSea. And on this basis, the thesis analyzes the necessity and feasibility of theimplementation of marine emissions trading in Bohai Sea region, and come to theconclusion that implementation of the marine emissions trading in the Bohai Rimregion is the trend. The thesis designs the overall design of the Bohai Sea regionmarine emissions trading from the total control, the allocation of initial emissionrights, trading market and regulatory aspects. Through the study, the conclusions areas follows.First, about initial emission rights allocation in the Bohai Sea region marine, thethesis allocates initial emission rights for four provinces and cities by the way of principal component analysis and fuzzy analytic hierarchy process method, and cometo the conclusion that Shandong: Hebei: Tianjin: Liaoning equals to0.362:0.298:0.177:0.163.Second, in the secondary trading market of emission rights, use the two sides bidauction model to study the problem of secondary market pricing. Only when the gapbetween marginal treatment costs for buyers and sellers of emission rights was at leastthe loss of profit opportunity of the sale of emission rights, the emissions trading willoccur. So we can see, it makes the performance of emissions trading more smoothlythat if the government gives the technological innovation enterprises or low-costmarginal treatment of enterprise appropriate reward or profit. In sunset industry andperfectly competitive product market, loss of profit opportunities of emission rights isrelatively small, so emission trading is easy to implement. However, in the sunriseindustry, it is not easy to execute emissions trading. In the imperfectly competitiveproduct market, the monopoly power will lead emission trading not easy to implement.Moreover, in the sunrise industry and imperfectly competitive product markets andeven the whole emissions trading market, due to the non-social rationality of the mainplayers in the market and the failure of market, emission rights trading need help andintervention, therefore, it is very necessary for the government to intervene in timelyand appropriately.Third, the thesis analyzes the main decision-making behavior when none-pointsource and point source take part in marine emissions trading transactions, and drawsthe following conclusions. The thesis comes to combination of minimum input factors,the optimal amount of pollution emitted, and the corresponding abatement amount. Ifthe abatement amount is greater than the total reduction targets, the manufacturersmeet the reduction targets, on the contrary, their abatement task is not completed.Similarly, in the case of not considering transaction costs, the comparison of organicfertilizer producers will compare the combination of increase of the unit emissionreduction costs and the loss of income and the benefit of selling emission rights. If thelatter is more than the former, then the organic fertilizer manufacturers will increaseproduction in order to get more emission rights to sell, and vice versa to reduceproduction.Forth, about safeguards in the Bohai Sea region marine emissions trading system,through the analysis of the Prisoner’s Dilemma model, it points out that the reasonsfor government failure, and through the introduction of the incentive factor to break the status quo and proposes to establish the Bohai Sea marine emissions tradingcommittee of the four provinces. At the same time, it is recommended that tointroduce local government agency competition in the local government performanceevaluation included in emissions trading in the implementation of the index system.Furthermore, about regulation of emissions trading, through the establishment ofsewage regulatory model, the thesis draws the conclusion that the marginal treatmentcosts, the efficiency of the regulatory body checks, inspection costs, and thepunishment of violations sewage enterprises are the main factors to influence thedecision-making of enterprises that discharge sewage. And then proposerecommendations as follow: to increase the punishment excessive emissions, toincrease the monitoring efforts of the regulatory authorities, and to reduce theregulatory costs of environmental regulatory authorities. Reducing regulatory costscan be proceed from the following aspects: to change environmental monitoringauthorities of the provinces of the Bohai Sea region into the environmental monitoringand consulting company with independent legal personality, to establish specializedenvironmental monitoring and consulting firm, to increase public supervision.