Research On The Legal Regulation Path Of The Failure Of China’s Carbon Emissions Trading Market From The Perspective Of Law And Economics

Carbon emissions trading is an environmental regulation tool based on market mechanisms.It optimizes resource allocation by setting a total amount of carbon emissions and a market trading mechanism,aiming to promote greenhouse gas emissions reduction,achieve the goal of carbon peaking,and realize the vision of carbon neutrality.Against the increasingly severe backdrop of global warming,carbon emissions trading,as an important energy-saving and emissions reduction regulatory tool,naturally becomes the focus of future work to improve the performance of the carbon market.Since 2011,China has successively launched carbon emissions trading pilots in multiple provinces and cities.The effectiveness of carbon market emissions reduction has begun to show,but the problem of low efficiency is also evident.From the pilot practice,the market liquidity is generally weak,the carbon price difference between different pilot areas is significant,and the participation of market entities is severely restricted.This makes the market mechanism unable to play a full role,and the market resource allocation lacks efficiency.In other words,there is a market failure problem in China’s carbon emissions trading practice.From the causes of market failure,the unclear property rights of the carbon market result in incomplete market competition,while the unreasonable control of the total amount and initial allocation methods trigger the failure of carbon market price signals.These are the culprits that reduce the efficiency of carbon market resource allocation.In addition,the problem of information asymmetry caused by inadequate carbon information disclosure and regulation and the negative externalities caused by carbon leakage also need to be addressed.In fact,these issues are all rooted in inherent flaws in market mechanisms that cannot be supplemented by market regulation alone.Therefore,scientific government regulation is needed to correct efficiency in these areas.In this regard,carbon emission rights should be clearly defined in legislation and their property rights structure standardized to ensure clear property rights in the carbon market.At the same time,starting from the actual construction of a unified national carbon market and under the premise of scientifically controlling the total amount,the initial distribution method should gradually transition from free allocation to auction,further improving information disclosure and MRV mechanisms,and addressing the problem of information asymmetry in the carbon market,gradually moving towards integration and unity of national and local carbon markets.Hence,effective government regulation can regulate market mechanisms,compensate for the inherent flaws in the carbon market,and correct market failure.