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A Study on Emissions Trading Mechanism of Cross-border River Basin

Author: WangPei
Tutor: ChenZuHai
School: Central South University for Nationalities
Course: Regional Economics
Keywords: the cross-border river basin emissions trading game monitoring section mechanism construction
CLC: X321
Type: Master's thesis
Year: 2011
Downloads: 77
Quote: 0
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With the rapid development of social economy and growing population, large exploitation of environmental resources is growing, which resulting in deterioration of environmental quality and environmental pollution. Environmental issues have become an important factor which restricts the social economic development and the human existence. In which, pollution of water resources is particularly prominent, water itself has self-purification capacity, but the abuse of water resources and excessive sewage cause many issues like deterioration of water quality. In the category of water pollution, the cross-border river basin is difficult to define because it spans administrative divisions and its property rights is difficult to define, pollution in cross-border river basin is very serious and the conflicts of interest which caused by pollution is increasingly fierce. In this context, how to prevent pollution of transboundary river basins is very important to have practical significance. As a effective means to solve the negative externalities of environmental pollution, Emissions trading is carried out in the domestic and foreign research and practical application, it creates a new way forward to solve the problem of environmental pollution. Then, based on this background, how to apply emission trading to administer pollution in Cross-border River Basin is an urgent problem to solve. Thus, according to the practice of emission trading both at home and abroad to build the emission trading mechanism of cross-border river basin has important theoretical and practical significance.The content could be divided into five parts:The first part describes the research context of the emission trading mechanism of cross-border river basin, and studies and reviews domestic and international emissions trading, Theoretical study of the emission trading at home and abroad has not only policy advice, but also the hypothesis to solve practical problems,which is valuable for the construction of emissions trading mechanism. On this basis, this part clarifies the contents and research ideas of the article.The second part introduces cross-border water pollution situation in China, analyzes the characteristics of transboundary river basins from an economic perspective. Cross-border river basin as public resources caused“tragedy of the commons”, the negative external effects of watershed pollution interferes with the optimal allocation of resources and causes inefficient market. Meanwhile, use game theory to analyze the stakeholders of emissions trading in cross-border river basin in the absence of management and under management, find that the introduction of emissions trading mechanisms to control cross-border river basin pollution is necessary.The third part describes the development of practices of emissions trading at home and abroad, summarizes the advanced abroad experiences of policies , legal, technology, market and academic research in emissions trading from foreign practices; through the main emissions trading practices by China, reflect on the problems of emissions trading practices, such as narrow trading range, excessive administrative intervention, the lack of follow-up assessment, inadequate implementation of laws and regulations and so on. This part summarizes the basic principle of emissions trading by practice.On the basis of the previous research, the fourth part constructs emissions trading mechanism on cross-border river basin. This part provides a approved method to the selection of indicators on transaction, the choice of the transaction mode and the determination of the total control objectives, determines that the total capacity of border control mode is more suitable for the needs of watershed pollution control. This part studies initial allocation of emission rights and the initial price determination、constructions of trading system and regulatory system, determines the free distribution combined with auction as the initial allocation and the improved initial allocation in equal proportions, meanwhile, designs emissions trading programs on the transboundary basin in accordance with the principle of equal contribution value, and establishes emission trading regulatory system including monitoring and public participation.The fifth part selects White River as a case, which is tributary of the Han River and across Nanyang, Henan and Xiangfan, Hubei. Through comparison of pollutants at Xin dianpu monitoring section, selects TP as trading indicators to design emissions trading in basin preliminarily, arranges the initial allocation of emission rights, regulates the design of their transaction price and transaction procedures, proposes to establish monitoring system and quota tracking system for emission rights market regulation, poses policies about legislation, incentives, information and other aspects.This paper analyzes the characteristics of cross-border river basin and practice and theory of emissions trading, in view of the status of transboundary water pollution and management problems, applies emissions trading which is effective in practice in foreign countries to our cross-border river basin innovatively, which may provide reference to manage pollution of transboundary river basin.

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CLC: > Environmental science, safety science > Administration of Environmental Protection > Environmental planning and environmental management > Regional environmental planning and management
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