Through this research, a methodological framework and its implementation are set up to analyze, model and facilitate the process of negotiation among central government and individual energy producers under environmental, economical and social constraints. Negotiation In decentralization : case study of China's carbon trading in the power sector discusses research carried out on negotiation issues in China regarding Chinese power sector reform over the past 30 years. Results show that conflicts exist between power groups and the national government, and that the most current negotiation topics in China's power industry are demand and supply management, capital investment, energy prices, and CO2 emission mitigations.Negotiation In decentralization : case study of China's carbon trading in the power sector is written for government policy makers, energy and environment industry investors, energy program and project managers, environment conservation specialists, university professors, researchers, and graduate students. It aims to provide a methodology and a tool that can resolve difficult negotiation issues and change a loss-loss situation to a win-win situation for key players in a decentralized system, including government policymakers, energy producers, and environment conservationists.