The Cost Of Emission Reduction Cof Thermal Power Enterprises Under Carbon Tax Regulation

Climate change is attracting worldwide attention,making all circles of society aware of the importance of developing a low-carbon economy and achieving sustainable social development.Considering the serious unbalance between resource reserve and consumption in China,one of urgent problems our country encounters is to realize the coordinated development of environment and economy.To solve this problem,the Chinese governnent has introduced a series of policies and regulations on energy conservation and emission reduction,such as carbon trading mechanism and environmental protection tax,exerting great pressure of emission cut on thermal power enterprises that consume huge amount of energy and discharge massive pollutants.With the purpose of developing strategy about energy saving and emission reduction for thermal power enterprises,this paper constructs a cost accounting model of emission reduction from static and dynamic dimensions,and simulates’ and analyses the optimal emission reduction strategy for these enterprises through example simulation under the double regulation of carbon tax system and carbon emission trading mechanism,so as to provide such enterprises with data support as well as theoretical basis in their efforts in energy saving and emission reduction.Firstly,the paper reviews and summarizes the basic theory of carbon tax and experience of the implementation of carbon tax in mature foreign markets,and studies environment-related taxes and other related theories in China.Secondly,on the basis of identifying production processes causing carbon emissions m thermal power enterprises,the paper introduces alternative emission reduction method for these enterprises and help them to define emission reduction costs and energy-saving benefits.Thirdly,based on partial equilibrium theory and marginal cost theory,this paper constructs the model of marginal abatement cost,and deduces the emission reduction effect of carbon tax and carbon trading mechanism considering different carbon tax rates.Fourthly,the researcher constructs simulation examples and adopts the model of marginal abatement cost to calculate marginal abatement cost of different energy-saving and low-carbon technologies under various discount rates.The results show that for thermal power enterprises,the implementation of emission reduction in the early stage will bring positive benefits and decrease cost,because the benefits outweigh the costs.On the other hand,with continuous investment in emission reduction,the marginal abatement costs will be constantly on the increase,and the enterprises5 impetus of cutting emissions will gradually decline.When the marginal abatement cost is zero,thermal power enterprises will not invest in emission reduction.Finally,built on the model of marginal abatement cost,the researcher constructs a dynamic optimized model of emission reduction cost,and formulates three carbon tax rate plans according to the carbon trading mechanism and future changes of carbon tax,aiming to achieve minimum total cost of energy saving and emission reduction during the planning period.The simulation results show that when thermal power enterprises are under low emission reduction pressure,cutting carbon emissions proactively results in decreased carbon dioxide emissions but does not meet the cost-benefit’principle,so the enterprises will not take emission reduction measures at this time.However,after the pressure of emission reduction is enhanced to a certain extent,actively cutting carbon emission leads to declined costs and makes thermal power enterprises fulfill their social responsibility in the pursuit of economic benefits.The innovation and contribution of this paper are as follows.By putting carbon tax and carbon trading under the same framework,this thesis predicts the situation of carbon tax based on the current situation of carbon trading market in China,combines the two systems to study the emission reduction cost of thermal power enterprises,and respectively builds the static MAC model and the dynamic abatement cost model.According to the simulation result srelevant conclusions are drawn to promote the sustainable development of thermal power enterprises,which reflects widespread practical and referential significance.