The Stimulation and Coordination Mechanisms of the Carbon Emission Trading Market of Public Buildings in China

Abstract

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The most important issue related to the establishment of carbon emission trading in China is how to motivate the owners of public buildings to participate. However, Existing research few considered the characteristics of public building owners and the influence of various uncertain factors in carbon emission trading investments. To fill this gap, this study constructs a carbon emission trading investment decision model of public building owners to study the mechanism that encourages them to participate, incorporating these characteristics and uncertain factors. The findings are as follows. First, carbon price is important in adjusting the emission reductions of different owners to minimize the total social cost of emission-reduction measures. Second, the price of carbon-emission permits has a significant impact on the investment threshold and decision-making behavior of public building owners. Finally, reducing the cost of energy-conservation and emission-reduction technologies in public buildings and appropriately subsidizing owners for their emission-reduction investment were effective methods to motivate them to participate in carbon emission trading. The results were used to quantitatively analyze the impact of a carbon emission trading mechanism on the decision-making behavior of public building owners and to construct the carbon emission trading mechanism used in China’s public building industry.

Keywords

• carbon emission trading market
• public building owner
• behavioral selection
• carbon price
• external coordination mechanism of trading