Research on Carbon Emission Market Pricing Based on Putty-Clay Vintage Model

Abstract

With the rapid development of economy, the ecological environment problem of global warming is becoming increasingly serious. In order to effectively implement carbon emission reduction, countries have successively established carbon tax system or carbon emission trading market. China has established carbon emissions trading market in seven pilot provinces since 2013, and plans to implement the national carbon emissions trading market in the ‘14th Five-Year’ period. In this process, how to price ‘carbon’ is the primary problem of China’s carbon trading market construction. This paper first reviews the current development status of carbon emissions pricing in China’s carbon trading pilot, and then analyzes the theoretical basis and price formation mechanism of carbon emissions trading pricing in the current carbon trading market, and then puts forward the carbon emissions pricing model based on Putty-Clay Vintage model, and puts forward reasonable policy suggestions for improving the current carbon pricing strategy in China.