Equilibrium Conditions Of Initial Allocation And Trading System Of Carbon Emission Rights

The excessive emission of carbon dioxide has brought severe challenges to human survival and development,and many countries have joined the ranks of emission reduction.The Chinese government promised to reduce carbon dioxide emissions per unit of GDP by 60%-65% by 2030 compared with 2005.On December 19,2017,the national unified carbon trading market was officially launched.One of the key issues of unified carbon trading market is the initial allocation of carbon emission rights.A good initial allocation method is the premise of the healthy operation of carbon trading market.At the same time,the initial allocation of carbon emission rights will also affect the activity of carbon market trading and the rationality of trading price.However,the current research on carbon price is usually separated from the initial allocation,which will lead to information lag and market failure.Therefore,the initial allocation of carbon emission rights and carbon trading price system analysis is conducive to improve the ability of initial allocation of carbon emission rights,carbon trading pricing and forecasting.In view of this,based on the emission trading theory,Pigou tax and externality theory,environmental property rights and Coase theorem,environmental finance theory and generalized Nash equilibrium theory,this paper takes the initial allocation of carbon emission rights and carbon trading market under the total amount control as the research object,and establishes the generalized Nash equilibrium model according to the operation process of carbon emission subject,government and carbon market,so as to analyze China’s carbon emission This paper analyzes the influence mechanism of initial allocation and carbon price.Firstly,this paper describes the design,initial allocation,principles of carbon trading system and the development of carbon trading market in various countries,and makes statistics on the trading situation of carbon trading pilot in China.By calculating the carbon emissions of pilot areas and non pilot areas,the significance of four carbon trading markets is explained.Secondly,in this context,considering the technical level,historical emissions and market sensitivity of carbon emission subjects,we focus on maximizing the interests of carbon emission subjects,fairness and efficiency of the first allocation of carbon emission rights,and healthy operation of carbon trading market,and construct an abstract carbon emission subject(which can be country,region,industry,enterprise or enterprise)An equilibrium model of the interaction among individuals,public regulators(world organizations,national governments or regulators,etc.)and markets(international markets,domestic markets or even smaller markets,etc.).Finally,the KKT system is established by calculation to analyze the conditions for the initial allocation and trade of carbon emission rights to achieve equilibrium;Clarify the relationship between technology level and initial allocation of carbon emission rights;It is clear how the government should regulate and control under the principle of ensuring fairness and efficiency.The results show that,without considering the influence of other factors,the subjects with high technology level should get more carbon emission rights;the balance of emission rights of each subject should be equal;the carbon trading price should be determined by the supply and demand of carbon emission rights.China’s carbon trading market is in its infancy.Based on the above conclusions,this paper mainly puts forward the following policy suggestions: the main body of carbon emissions needs to continuously improve the technical level and improve the utilization rate of carbon emission rights;fair distribution of the initial allocation of carbon emission rights to achieve the same balance of carbon emission rights;give full play to the price discovery function of carbon trading mechanism.