Carbon Trading Pricing Mechanism and Its Impact on the Energy Industry

In economics, the negative externality of environmental pollution can be solved through internalization. Carbon pricing is the economic behavior of enterprises or governments to internalize the cost of greenhouse gas emissions. This article will analyze the carbon trading system, summarize the development process of domestic and foreign carbon trading markets, analyze the pricing mechanisms of the two from economic principles, and derive their impact on the energy industry, in order to provide strategic reference for enterprises to actively respond to the carbon pricing system. The pricing mechanism of the carbon emission trading system is divided into value determination and price fluctuation. The value is determined by the overall goal and is influenced by the quota allocation method. The price is determined by the emission reduction and carbon fixation costs of each participating enterprise in the long run, and is affected by the discount of low-carbon benefits in the short term. At present, China’s carbon emissions trading has obvious performance period effects and insufficient liquidity. Financial institutions can more effectively guide low-carbon transformation with carbon trading prices. At present, the limited carbon pricing mechanism has a relatively small impact on the energy industry. In the future, the energy industry can achieve profit growth in the carbon trading market by actively reducing carbon, or manage its volatility risk and profit from actively studying carbon trading prices.