Analysis of the operating mechanism and dilemmas of China's carbon emissions trading market under the background of unified national market

Abstract

China's National Carbon Emissions Trading Market officially launched online trading on July 16, 2021. However, there are insufficient studies involving the overall analysis of the operating mechanism, current problems, and corresponding solutions in relation to China's national carbon market. In respect of such fact, the paper systematically discusses the operating mechanism of China's carbon emissions trading market based on the externality theory and Coase's Theory of Property. With reference to China's goals of carbon neutrality and peaking carbon dioxide emissions, the paper presents the five major dilemmas faced by the development of China's carbon emissions trading market. In the last part, some measures, for example, promoting the trading diversity of the carbon market, etc., are suggested under the background of developing a unified national market in an effort to improve the development of China's carbon emissions trading market.