Abstract

As China decided to start the national carbon market with electric power industry as a breakthrough at the end of 2017, it is necessary to study the performance of electric power industry under the national carbon market. In this study we analyze the interaction between carbon market trading and electricity market trading and conclude that the operation of carbon market will change the structure of power generation. And then we analyze the impact of carbon market on the purchase and the sale of electricity generation by power generation companies and the transmission of carbon prices to electricity users through the electricity market. Finally provide valuable suggestions for the construction of China’s carbon market and cooperation with the development of electric power industry.

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