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The economic root of excessive emissions of greenhouse gases is an important content in the low carbon economy theory, in which the basic problem is how to build the effective path and mechanism of the carbon emission reduction. This paper, on the basis of external effect theory in the market failure theory, has discussed the carbon emission externality performance and governance path. By building up a simple model of productive negative external effects, it has quantitatively analyzed the influence on the amounts of carbon emissions to manufacturers combined in order to eliminate external, and summed up realization conditions for the carbon emission reduction path. The article considers that carbon emission reduction can be achieved through the internalization of external effect, and the event will occur only if polluted enterprises are facing the obstacles when they pursue the maximization profits.