Research On The Operating Mechanism Of Hubei Emission Exchange

China has always been a positive attitude to participate in global climate governance.In 2015 Chinese government committed to the world that China’s carbon dioxide emissions would peak in 2030 and strive to ahead of schedule,China would reduce carbon dioxide emissions per unit of GDP by 60-65% from 2005 levels by2030.Now China is facing a grim situation of emission reduction.Emission trading is a market-based emission reduction mechanism.In 2013 and 2014,China has started seven emission trading pilots of which Hubei’s trading volume is the largest and the market is most active.Therefore,pilot of Hubei draws much attention of the domestic and foreign.The thesis regards Hubei Emission Exchange(HEE)as the research object,doing research on its operating mechanism,trying to tease out the characteristics of its mechanism design and price operating condition,and giving policy suggestions for its further construction.The first chapter introduces the significance of title and the research situation at home and abroad of the emission trading.The second chapter systematically expounds the theoretical basis of emission trading,including the superiority of emission trading in economics,comparison of emission trading and carbon tax,mechanism design for achieving emission trading.The third chapter introduces the most typical carbon market——EU’s Emissions Trading Scheme and the progress of China’s emission trading pilots,as the reference and background for the construction of Hubei Emission Exchange.The fourth chapter makes the comprehensive analysis and evaluation of characteristics of Hubei Emission Exchange’s mechanism design in caps setting,allowance allocation,market transaction,MRV and performance.The fifth chapter uses the dummy variable regression to analyze the impact of the three mechanism factors of which are verification,performance and new product on carbon price which shows that only the performance has the significant impact.Meanwhile,we use the event study methodology to analyze the abnormal fluctuation of carbon price during the performance which shows HEE is short of effectiveness.The sixthchapter gives three pieces of policy suggestions.The first is to further strengthen the regulation of Hubei Emission Exchange,the second is to guide enterprises to carry out carbon asset management more actively,the third is to do well in contacting with the national emission trading market.