Comparison Research of Investment Incentive Effects Between CDM and Quota-trading Mechanism

Following the prospects of carbon emissions trading,the introduction of CDM and quota-trading mechanism was compared.A two-stage game was used to investigate enterprises′ output decisions and investment decisions step by step.During this process,the incentive effects of the two kinds of carbon emissions trading mechanisms for low-carbon electricity technology investments were compared in detail with benefit models in oligopoly market.In the conclusion,the corresponding effectiveness analysis was also described briefly in perfect market.The results suggested that the return of investment under the CDM mechanism will not be less than that under the quota and trading mechanism in perfect market.However,the investment under the CDM mechanism may be faced with a strategic mistake in oligopoly market,which leads a lower return on investment under the CDM mechanism than the quota and trading mechanism.All in all,a useful reference was provided for the design of carbon emissions trading mechanism in China′s electricity market.