Fundamental issues and solutions in the design of China’s ETS pilots:Allowance allocation, price mechanism and state-owned key enterprises

(整期优先)网络出版时间:2013-01-11
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ThispaperanalyzesthethreemainfundamentalissuesinthedesignofChina’sETSpilots,includingallowanceallocation,pricemechanismandstate-ownedkeyenterprises,andproposedsuggestedsolutions.Fortheissueofallowanceallocation,wesuggestthatthegradualhybridmodecouldbeappliedatthebeginning,whichstartswithmainlyfreeallocationandthenincreasesauctionratiogradually.Andgrandfatheringisasuitablemethodoffreeallocation.Fortheissueofpricemechanism,wesuggestapricefloatingzonewithopenmarketoperationtoreducetheuncertaintyofprices.Fortheissueofstate-ownedkeyenterprises,wesuggestagoodcoordinationwithSASAC,definingthestate-ownedpropertyrightandsupervisionrightwhenstate-ownedkeyenterprisesareinvolvedintothecarbonmarket,andthelocalgovernmentcansetrulesofallocationandtransactiontolimittheirpotentialmarketpower.