Income Class Distribution Effect Of China’s Carbon Emissions Trading

Climate warming has become a global problem, causing more and more attention.The third conference of the Parties held in Tokyo in 1997, representatives of 149 countries and regions signed the "Kyoto Protocol",which proposed that establish a carbon emissions trading mechanisms to control global greenhouse gas emissions.At the same time China’s environmental pollution is getting worse, the experience from the current global environmental governance perspective, emissions trading will be an important policy tool to achieve our emission reduction targets, now in Beijing, Shanghai, Tianjin, Chongqing, Hubei, Guangdong and Shenzhen has established seven carbon emissions trading pilot. However, there are many problems to be solved about carbon emissions trading. Among them, the initial allocation of carbon emission rights is an important issue of carbon emissions trading to be solved first. Theoretically speaking, how to allocate carbon emissions does not affect the reduction efficiency of the society, therefore fairness issue of carbon emission rights initially allocated will be the first consideration issue of carbon emission mechanism design. How rational allocation of carbon emission rights, So that residents of different income groups bear the burden of emission reduction in a more equitable, is the problem of much-needed research, to promote China’s carbon emissions trading market, to solve our environmental problems have important practical significance. This article is divided into five chapters: the first chapter introduces background and significance of the research, then introduces framework, technical route and literature reviewed, and elaborated the innovation of this paper; the second chapter, the status of China’s carbon emissions trading were introduced; third chapter introduces the theory of carbon emissions trading, including the external theory, Pigou theory, Coase theory; the fourth chapter, by considering carbon emissions trading impact on both household spending and income using CGE model to simulate the effects of income distribution in China under three different initial distribution policy; the fifth chapter, utilization of the above conclusions, gives advice to carbon trading system should take which initial allocation policy and summary and outlook the study of this paperThis paper uses the CGE model to simulate the effects of income distribution in different initial allocation policy. The research showed that:(1) from the absolute point of view, the impact of grandfather method on the various income class redistribution is relatively modest, the auction and strength method are relatively strong, in the strength method the burden ofall population has increased, while in the auction method the lower-middle class enjoy a certain advantage;(2) form the relative point of view, auction method a strong progressive, strength method has strong regressive, grandfather method has weaker progressivity. Above empirical results it means that auction or grandfather method is a more rational method to allocate carbon emission rights, and the strength method may not be fair.According to the conclusions of this paper, in the initial implementation of our carbon emissions trading mechanism should be based on free allocation grandfather Mainly, supplemented by allocation auction method, in the deepening of the process of promoting carbon emissions trading schemes, gradually expand the proportion of auctioning until eventually all carbon emission rights are made of auction method allocation.