Abstract:The power industry, asSthe largest carbon dioxide emissionsSdepartments in national economy of our country, is facing tremendousSpressure to reduce emissions. Based on abasement cost of thermal power, this paper reports a laboratory experiment to examine carbon trading efficiency of power industry which influenced by the initial permits’ allocation in double auction carbon trading. By varying the initial allocation of permits, the experiment constructs two treatments. One is Symmetry/Monopoly, the other is Asymmetry/Oligopoly. The experimental results, such as price, IMTE, transaction volumes and trading efficiency, shows that Double Auction system can suppress the market power caused by differences in the initial allocation.