Construction of Eco-economic Growth Model based on Carbon Market Mode

All the countries of the world are pursuing the balance between the economic development and ecological environment with the trend of the global warming.To transform a single economic objective to multiple objectives of eco-economic coordinative development,natural capital having no price should be compensated by appropriate initiatives.The carbon market is one typical example of externality problem solved by market mechanisms.The externality of CO2 emission has been internalizing by carbon market mechanisms.The economic instruments realize the value of natural capital including carbon.Establishing the eco-economic model by combining the natural capital with the other productive factors in the paper is aim to analyze the dynamic of the natural capital increment and that of capital stock.It concludes that natural capital affects capital stock to show different results as a result of different economic scales of new knowledge.The eco-economic growth is contingent on the return to scale of new knowledge and that of natural capital.At last it analyzes the carbon capital market economy,and reviews the economic scale of new knowledge penetration.