Climate Change Research ›› 2018, Vol. 14 ›› Issue (3): 310-317.doi: 10.12006/j.issn.1673-1719.2017.217

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Evaluation on carbon price stabilization mechanism of Hubei ETS pilot and its policy implications

Xiu-Jie TAN1,2,Ban-Ban WANG3,Jin-Peng HUANG4   

  1. 1 Institute for International Studies, Wuhan University, Wuhan 430072, China
    2 Climate Change and Energy Economics Study Center, Wuhan University, Wuhan 430072, China
    3 School of Economics, Huazhong University of Science and Technology, Wuhan 430074, China
    4 China Hubei Emission Exchange, Wuhan 430070, China
  • Received:2017-10-31 Revised:2017-12-13 Online:2018-05-31 Published:2018-06-07

Abstract:

There are many factors that can influence the demand and supply of allowances in carbon emission trading system. To avoid a severe unbalance between demand and supply of allowances or an excessive fluctuation of carbon price, the Hubei ETS pilot set up a systematic carbon price stabilization mechanism, including classified allowance management, automatic cancellation, ex-post adjustment, allowance reserve and price limit, which has been exerting positive effects. In conclusion, attention should be paid on carbon price stabilization mechanism in the establishment of the national carbon trading system.

Key words: Hubei Province, ETS pilot, Carbon price fluctuation, Price stabilization mechanism

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