Carbon Emissions Trading and Sustainable Development of Power Industry

Climate change is a significant issue related to the sustainable development of human society. Carbon emissions trading is the combination of market mechanism and macro-control, by which greenhouse gas emission control targets can be achieved, while benefits of both parties maximized through the optimal configuration of marginal abatement costs. Three aspects of sustainable development potential in power industry are analyzed based on the theory of carbon emissions trading, combined with the carbon emissions status of Chinese power industry. At the same time, three elements for building the carbon emissions trading market system in power industry are proposed, including the relevant policy recommendations, which provide a useful reference for the design of carbon emissions trading mechanism in electricity market.