Abstract:To cope with global warming, China has begun to gradually establish a carbon permits market and punish corporate with excess emissions. As a department with the largest carbon emissions, the power plants can choose to reduce emissions by hybrid energy usage or buy the carbon credits from the market or accept the penalty of excess emissions in the end. Based on the above background, the paper established an optimal decision model by taking the rate of emission abatement and the rate of carbon permits trading as decision variables, the level of accumulative carbon permits as a status variable, the total cost of emission abatement as an objective function. Then we deduct the dynamic paths of the emission abatement rate and the usage amount of natural gas. We also analyze that the marginal cost of emission reduction with carbon trading is smaller than that without carbon trading and the government can easier achieve the emission target during the planning period.