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The Future of Chinese Carbon Market: A Comparison Between Carbon Tax System and Carbon Emission Trading Market

Yixuan Cao


Greenhouse gas emission has been identified as the most important factor of recent global climate change. Countries around the world are beginning to ameliorate the phenomenon under the initiative of the United Nations. The two feasible carbon mitigation measures, carbon tax system and carbon emission trading market, proposed in the United Nations Framework Convention on Climate Change (UNFCCC) are now accepted universally.In order to solve the problem of global warming caused by the rise in carbon emissions, "energy saving and emission reduction" has become a direction of our development of green economy. This paper studies carbon tax system and carbon emission trading system, analyzes the advantages and disadvantages, complementarity and compatibility of the two systems from the perspective of emission reduction cost, extensiveness of applicable objects, institutional fairness and implementation effect, and gives some suggestions based on this nature.


Green Finance; Carbon Emission Trading Market; Carbon Tax System

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DOI: http://dx.doi.org/10.18686/fm.v7i3.4565