Theoretical Analysis and Framework Design of Carbon Inclusion Mechanisms from the Perspective of Carbon Emission Trading Markets

Abstract

According to the Global Carbon Emissions Report 2023, China's carbon dioxide emissions are about 12.7 billion tons, accounting for 34% of global carbon dioxide emissions, ranking first in the world. With China's rapid socio-economic development and growing population, there exists a huge potential for carbon emission reduction in the field of residential consumption. As an innovative voluntary emission reduction mechanism for individual low-carbon living and consumption in China, the Carbon Price Reduction System (CPRS) helps to encourage individual emission reduction behaviors, thus promoting carbon emission reduction. From the perspective of theoretical analysis and comparative case study, this paper analyzes in depth the operation logic of the carbon preference system, combs through the current status of carbon preference system practice and compares it, and puts forward the design of the carbon preference system framework which is led by the government, driven by the enterprises, promoted by the financial institutions, and participated by the public. The key link of this system is to quantitatively assess the contribution of individual carbon emission reduction, and build an effective incentive system based on this to cultivate individuals' low-carbon living habits based on the principle of "whoever reduces emissions, whoever benefits". This paper analyzes the development path of China's carbon preference system and the related suggestions, which can help stimulate the public to participate more actively in carbon emission reduction actions and help China's "dual-carbon" goal to be realized. This system will be continuously improved in practice and make greater contributions to China's green and low-carbon development.