Climate Change Research ›› 2019, Vol. 15 ›› Issue (3): 246-256.doi: 10.12006/j.issn.1673-1719.2019.017

• Carbon Market Development • Previous Articles     Next Articles

Review and comparative analysis on auction mechanism for allowance allocation in carbon markets

Wen-Xiu ZHANG1,Mao-Zhi DENG2(),Jian ZHOU2   

  1. 1 School of Economics and Management, Beihang University, Beijing 100191, China
    2 Institute of Energy, Environment and Economy, Tsinghua University, Beijing 100084, China
  • Received:2019-01-15 Revised:2019-04-04 Online:2019-05-30 Published:2019-06-06
  • Contact: Mao-Zhi DENG


The auction mechanism plays an important role in carbon markets. In this paper, we review the auction mechanism in different carbon markets, including the EU, California, Australia and China’s pilot carbon markets, and we analyze the auction effect on these carbon markets. The auction practice of international carbon markets shows auction mechanism can benefit carbon markets by better operations and liquidity. However, China’s pilot carbon markets are still under development and improvement and the auction mechanism is at experimental stage. We propose some suggestions to China’s national carbon market from the auction factor design, the auction platform construction and the auction fund management. These research conclusions and recommendations are expected to provide valuable reference for the design of auction mechanism in China’s national carbon market.

Key words: International carbon markets, Emission allowance, Auction allocation

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