A Distributed Secondary Trading Model with Fluctuating Reputation Value for Carbon Emission Reduction

A Distributed Secondary Trading Model of carbon emission permits (D-STM) is designed to encourage firms to take long-term measures to realize the aim of carbon emission reduction. Fluctuating Reputation Value (FRV), severed as a kind of incentive factor, is introduced to the D-STM in this paper to promote the emission reduction work of participants in the D-STM because of the higher economic efficiency. The final case study confirms the validity and effectiveness of the D-STM and the facilitating role of the FRV.