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Bulletin of Chinese Academy of Sciences (Chinese Version)

Keywords

carbon emissions trading, effective cost constraint, environmental effectiveness, cost effectiveness, incentive effectiveness

Document Type

Policy & Management Research

Abstract

The carbon market serves as a crucial policy tool in the pursuit of carbon peaking and carbon neutrality goals. It holds significant importance in driving the innovation of green and low-carbon technologies in China, facilitating the realization of nationally determined contributions, and bolstering China’s global leadership in climate action. The core function of the carbon market is carbon pricing, which can only be effective and achieve various objectives like carbon emissions reduction and sustainable development when carbon costs are reasonably constrained. Environmental effectiveness, cost effectiveness, and incentive effectiveness are three important dimensions to evaluate the effectiveness of the carbon market, and the absence of any one of the three may lead to ineffective carbon cost constraints. To achieve environmental effectiveness, it is necessary to set an ambitious cap, and gradually introduce and increase the proportion of paid allowances; to achieve cost effectiveness, it is necessary to expand the coverage of the carbon market and reduce transaction costs; to achieve incentive effectiveness, it is necessary to maintain the stability of carbon prices and gradually increase carbon prices to expand the scale of carbon asset pools. Environmental effectiveness, cost effectiveness, and incentive effectiveness, the three important dimensions to evaluate the effectiveness of the carbon market, are also three significant goals to construct the institutional system of the carbon market. Therefore, careful attention must be paid to coordinating and realizing environmental effectiveness, cost effectiveness, and incentive effectiveness, while considering implementation timing.

First page

1365

Last Page

1374

Language

Chinese

Publisher

Bulletin of Chinese Academy of Sciences

References

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