ZHANG Xiliang, Director of Tsinghua-CTG Joint Center for Climate Governance and Low-carbon Transformation (JCGLT), and ZHANG Da, Deputy Director of JCGLT et al. published the paper "Theory and Practice of National Carbon Market Design with Chinese Characteristics" in Management World.

Based on the basic theory and practice of carbon market at home and abroad, this paper systematically analyzed the key issues in the design of carbon market for the first time. The paper also discussed the differences and similarities between carbon tax and carbon market, how to set the cap, how to allocate carbon emission quota, how to evaluate the effectiveness of the operation of carbon market, how to balance efficiency and political acceptance, how to interact with other policies and mechanisms, and how to promote international carbon trading cooperation.

Then based on analysis of the above problems, the paper sorted out the basic logic of China's carbon market, and proposed an overall carbon market design which was backed up with a scientific theoretical guidance and suitable for our country's specific situations. The paper provides strong theoretical support and feasible policy solutions for the construction of China’s national carbon market.