
Literature Review of Carbon Finance and Low Carbon Economy for Constructing Low Carbon Society in China17
trial, commercial, residential and transportatio n of carbon
dioxide emissions and forecast the future of these units of
carbon dioxide emissions. On this basis, then quantita-
tively design line of low-carbon eco nomy: 1) Maintained
the county’s 1.6% annual GDP growth, so that carbon
dioxide emissions reduce by 30-50% by 2030 baseline in
1990. 2) To achieve the intended emission reductions
must adjust the socio-economic structure and develop the
new technology in itiatives. 3) Adopt inno vative measures
at the county level, including: land planning, promoting
renewable energy and lifestyle changes.
Reference [5] thinks that the protection of the envi-
ronment, particularly greenhouse gas (GHG) emissions
have become an indicator of quality of economic growth.
As the international community has had a global con-
sensus on carbon price, so some countries have devel-
oped strategies for economic development in low-carbon
leading. A Masidaer project in Abu Dhabi, United Arab
Emirates, is developing a renewable energy and sustain-
able development of broad stone technology, low-carbon
economy for the future development of sk ills, knowledge
institutions and the necessary capital. In addition, the
aims of the Masidaer project is to establish a carbon neu-
tral, zero waste city in the world and taking efforts to
develop carbon capture and storage project.
Reference [10] explored the background of low-carbon
economy, analyzed the China’s development path and
methods of low-carbon economy. China can control car-
bon emissions and develop low car bon economy through
the development of low carbon industry in China,
low-carbon agriculture, low-carbon industry, carbon se-
questration and carbon reduction cities and other feasible
ways.
There is no international unity on the definition of
low-carbon economy, combined with the documents
above we can defined it as: it is a win-win economic de-
velopment patterns that under the guidance of the con-
cept of sustainable development, through technical inno-
vation, new energy development, industrial restructuring,
system innovation and other means to reduce coal and oil
consumption of high-carbon energy, reduce greenhouse
gas emissions, achieve economic and social development
and ecological environment protection as much as possi-
ble. Low-carbon economy, in essence, is the efficient use
of energy, clean energy development, the creation of
green GDP, the core is the ener gy technology and carbon
emission reduction technology innovation, industrial
structure and system innovation and the concept of hu-
man survival and development of fundamental change.
3. Carbon Finance Literature Review
Carbon finance is built on the basis of a low carbon
economy, financial market activities which develop a
low carbon economy and the related policy can be re-
ferred to as “carbon finance.” So far, main research about
financial carbon finance at home and abroad is:
Reference [11] proposed the establishment of carbon
credit financing is an effective measure to control green-
house gas emissions.
Reference [12] studied Guyana (Latin America) of
concrete cases, analyze the economic feasibility of car-
bon offset projects through cost-benefit analysis and
carbon emissions in the simulation model. Analysis
showed that when the pr ice of $ 0.23/tC carb on sinks, the
large-scale commercial forest harvesting and forest pro-
tection benefit breakeven.
Reference [13] study is based on national planning and
development department by the input-output tables, using
the input-output decomposition technique analyze four
aspects of measures to reduce the effect of carbon
equivalent, which is four: fuel mix effect (due to a
change in the emissions of fuel mix changes), structural
effect (no carbon tax and carbon tax case, changes in
emissions), the impact of final demand (final demand
change on the impact of changes in emissions), Com-
bined (mixed fuel, structure and final demand of these
three aspects of the interaction effect). Out the final con-
clusion is: when the carbon tax is $50/tC, the energy tax
is $ 1.0/MBtu, you can control carbon emissions.
Reference [14] the United States formulated trade pol-
icy to control carbon emissions, the establishment of a
well-designed carbon trading market to develop carbon
price will be a major factor for enterprises to redu ce co sts
and promote the innovation. In the establishment of car-
bon trading market, we must also formulate relevant
supporting policies, such as incentives related to such,
only in this way can be more effectively prompted the
U.S. transition to a low carbon economy.
Reference [15] the Indian government plans to take
home solar power plan to give light to 78 million rural
families which still use kerosene for lighting for the lack
of transmission equipment. This program can not only
bring light to rural families, but also can effectively re-
duce greenhouse g as emissions. In th e clean develop ment
mechanism, the scheme will bring the benefits by calcu-
lating because of greenhouse gas emission reductions.
When the $10/tC, give each family reduced by 19% of
the cost.
Reference [16] from a theoretical point of view, the
Clean Development Mechanism the scale of the reduc-
tion of greenhouse gas emissions for developing coun-
tries, even in government financial support to reduce the
case, the reduction power is adequate, the project’s cred-
iting process is effective inter-of. However, the effect of
the clean development mechanism must also be larger in
developing countries results in carbon emissions to be
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