The Empirical Study On The Pricing Of The Emission Rights In The Secondary Market

Due to global warming and the depletion of energy, countries all over the worldtreat energy conservation as an important topic. The signing and entry into force ofthe Kyoto Protocol is an important outcome, contributed to the rapid rise in emissionstrading. From2005to2012, international carbon turnover growth up to a dozen times,emission trading market is thriving. However, the legal effect of the Kyoto Protocolcan only be renewed by December2012.How to engage in international emissionreduction in the era of post-Kyoto? Whether can the views of "common butdifferentiated responsibilities" be accepted by developed countries? In Cancun，Copenhagen and Symbian, the main topic of climate change conference was thecontinuation of the Kyoto Protocol and the allocation of responsibilities to cutemissions.At the climate conference in Copenhagen in2009, China promised to reducecarbon emissions per unit of GDP by40%to50%in2020than in2005. No matterwhat is the result of the international climate negotiations, we will continue taking theroad of exploiting clean energy and reducing carbon emissions. China has become thelargest supplier of CDM market so far. China owns more than half of the number ofregistered projects and CERs. However, China can’t determine the price of emissionrights. Therefore, study on characteristics of emission price and pricing mechanism isnecessary and urgent. It is also the main task of this article. Specific contents of thisarticle are as follows:Firstly, we introduce the concept of emissions and analyze the maincharacteristics of emission rights. In addition, we introduced the common and maindifference of emission rights comparing with the ordinary commodity, noted theformation of emission rights price and the main factors that affected emission values.Secondly, we describe the status, project structures and price characteristics ofChina. Then we point out the achievements in emission trading, highlight theproblems encountered in the process of development, and identify major causes contributing to the low CERs price.Thirdly, we analyze the long-term equilibrium and short-term fluctuationrelationship between the price of energy, economic growth and the prices of emissionrights.At last, we came to the main conclusions of this article on the basis of precedinganalysis, and made several recommendations for problems in China’s emissionstrading market.