Carbon Emission Tax VS Carbon Emission Market, Which One Is Better

This article mainly adopts modeling analysis, literature analysis and case study methods to compare the similarities and differences between carbon tax mechanism and carbon emission mechanism to discuss their advantages and limitations, and concludes that carbon market mechanism has obvious advantages such as low cost, flexibility, cross-industry and cross-territory compared with carbon tax mechanism, while carbon tax mechanism has obvious problems such as inefficiency and high cost. Carbon market mechanism, as a mainstream means of reducing emissions, has been piloted or implemented in some major carbon emitting countries. Based on the characteristics of carbon market and carbon tax, as well as their respective advantages and disadvantages, it is more reliable to adopt both carbon market policy and carbon tax policy. Specifically, the carbon market should be the main mechanism to stimulate more channels to actively reduce carbon emissions, while the carbon tax policy can punish those enterprises that are late in meeting the emission standards