Initial Quota Allocation Scheme Based on Energy Consumption and Carbon Emission Rights

Abstract

The establishment of the trading market of energy consumption rights and carbon emission rights includes five steps, among which the most important link is the initial quota allocation. Different initial allocation methods of carbon emission quota have different impacts on the income and market trading price of carbon trading enterprises. This paper will be based on different allocation methods of free quota. On the most representative quota allocation methods such as historical method and datum method and factor correction method for simulation, the results show that history need data relative to a benchmark method is relatively simple, but history method tends to result in energy intensive and highly polluting area right to gain more energy in the initial distribution and carbon emissions, is not conducive to positive to promote technological progress; On the contrary, the benchmark method requires high quality data and complex formulation process, but it is more beneficial for low-emission enterprises to achieve carbon emission reduction targets with higher income and less carbon emissions. The multi-factor method combines the advantages of both methods, considers both methods at the same time, and can make the results biased to one method by adjusting the guiding factor, which has strong flexibility