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Natural Hazards

, Volume 92, Issue 2, pp 761–782 | Cite as

Research on carbon market price mechanism and influencing factors: a literature review

  • Chang-Jing Ji
  • Yu-Jie Hu
  • Bao-Jun TangEmail author
Original Paper

Abstract

Carbon emissions trading is being used by more and more countries or regions to solve the global warming problem. The establishment of China’s carbon market mechanism is still under exploration and improvement. This paper focuses on the price determination mechanism in the carbon market. Based on the price theories, we analyze the theoretical basis of the carbon price formation and the carbon price transmission mechanism from the perspective of the agents that affect carbon price. From these angles including residents’ demands, enterprises’ actual emissions and indirect effects on residents’ demands, the government’s setting for carbon market institutions and indirect effects on residents and enterprises, as well as energy markets and financial markets, we analyze how these factors influence the carbon price. In turn, we discuss how carbon price affects the enterprise costs, energy-saving technologies and residents’ welfare. Besides, we summarize the current price mechanism of domestic and overseas major carbon markets. Finally, based on the current research on carbon price theory and its influencing factors, we also present some further directions on carbon price mechanism and influencing factors including China’s carbon market price mechanism design, the quantitative analysis of carbon price factors and improvement of carbon price theory.

Keywords

Carbon market Price mechanism Influencing factors Transmission 

Notes

Acknowledgments

We gratefully acknowledge the financial support from the National Natural Science Foundation of China (Grant Nos. 71573013, 71521002, 71642004), the Beijing Natural Science Foundation of China (Grant No. 9152014), Special Items Fund for Cultivation and Development of Beijing Creative Base (Grant No. Z171100002217023), Key Project of Beijing Social Science Foundation Research Base (Grant No. 15DJA084), National Key R&D Program (Grant No. 2016YFA0602603) and Special Items Fund of Beijing Municipal Commission of Education.

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Copyright information

© Springer Science+Business Media B.V., part of Springer Nature 2018

Authors and Affiliations

  1. 1.Center for Energy and Environmental Policy ResearchBeijing Institute of TechnologyBeijingChina
  2. 2.School of Management and EconomicsBeijing Institute of TechnologyBeijingChina
  3. 3.Collaborative Innovation Center of Electric Vehicles in BeijingBeijingChina
  4. 4.Sustainable Development Research Institute for Economy and Society of BeijingBeijingChina

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