Efficient Auction Mechanisms for Carbon Emission Rights Allocation

2011 ◽  
Author(s):  
Mingxi Wang ◽  
Bianling Ou ◽  
Mingrong Wang ◽  
Shouyang Wang
Keyword(s):  
Carbon Emission ◽  
Auction Mechanisms ◽  
Emission Rights

scholarly journals A Pareto Optimal Auction Mechanism for Carbon Emission Rights

2014 ◽  
Vol 2014 ◽  
pp. 1-7 ◽  
Author(s):  
Mingxi Wang ◽  
Mingrong Wang ◽  
Chuangyin Dang ◽  
Shouyang Wang
Keyword(s):  
Finite Number ◽  
Carbon Emission ◽  
Individual Rationality ◽  
Commercial Application ◽  
Pareto Optimal ◽  
Auction Mechanism ◽  
Optimal Auction ◽  
Auction Mechanisms ◽  
Pareto Efficient ◽  
Emission Rights

The carbon emission rights do not fit well into the framework of existing multi-item auction mechanisms because of their own unique features. This paper proposes a new auction mechanism which converges to a unique Pareto optimal equilibrium in a finite number of periods. In the proposed auction mechanism, the assignment outcome is Pareto efficient and the carbon emission rights’ resources are efficiently used. For commercial application and theoretical completeness, both discrete and continuous markets—represented by discrete and continuous bid prices, respectively—are examined, and the results show the existence of a Pareto optimal equilibrium under the constraint of individual rationality. With no ties, the Pareto optimal equilibrium can be further proven to be unique.

The pilot trading of carbon emission rights and upgrading of industrial structure

2020 ◽  
Vol 68 (1/2) ◽  
pp. 82
Author(s):  
Dongsheng Zhao ◽  
Yu Ma ◽  
Huaiwen Zhang ◽  
Xinyu Wang
Keyword(s):  
Carbon Emission ◽  
Industrial Structure ◽  
Emission Rights

scholarly journals Strategies for Capital Constrained Timber and Carbon Sink Supply Chain under the Cap-and-Trade Scheme

2020 ◽  
Vol 12 (11) ◽  
pp. 4380
Author(s):  
Xinyue Yang ◽  
Ye Song ◽  
Mingjun Sun ◽  
Hongjun Peng
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Carbon Sink ◽  
Cap And Trade ◽  
Stackelberg Model ◽  
Emission Rights ◽  
The Government ◽  
The Impact ◽  
Reduction Costs

We consider a capital constrained timber and carbon sink supply chain under the cap-and-trade scheme, where the forest company produces timber and carbon sink. We consider two subsidy modes: financing subsidy to the carbon sink forests and financing subsidy to the manufacturer’s emission reductions. We apply a Stackelberg model and mainly consider the impact of subsidies on the profits and the strategies of the supply chain members. The results show that when the government gives a financing subsidy to the carbon sink forests, it is conducive to promoting the expansion of carbon sink forests, as well as the enhancement of the forest company’s profit. However, a larger supply of carbon sinks generates a lower price, which leads to the manufacturer reducing the technical emission reduction level and purchasing more carbon emission rights instead. On the other hand, when the manufacturer receives a financing subsidy for the technical emission reduction costs, its production becomes cleaner than before, and the profits of the forest company and the manufacturer increase.

scholarly journals Research on the Correlation Between WTI Crude Oil Futures Price and European Carbon Futures Price

2021 ◽  
Vol 9 ◽  
Author(s):  
Zhengwei Ma ◽  
Yuxin Yan ◽  
Ruotong Wu ◽  
Feixiao Li
Keyword(s):  
Crude Oil ◽  
Carbon Emission ◽  
Mutual Effect ◽  
Futures Prices ◽  
Price Fluctuation ◽  
Oil Futures ◽  
Sea Levels ◽  
Crude Oil Futures ◽  
Futures Price ◽  
Emission Rights

In recent years, the rapid increase in CO2 concentration has accelerated global warming. As a result, sea levels rise, glaciers melt, extreme weather occurs, and species become extinct. As the world’s largest CO2 emission rights trading market, EU Emissions Trading System (EU-ETS) has reached 1.855 billion tons of quotas by 2019, influencing the development of the global carbon emission market. Crude oil, as one of the major fossil energy sources in the world, its price fluctuation is bound to affect the price of carbon emission rights. Therefore, this paper aims to reveal the correlation between crude oil futures prices and carbon emission rights futures prices by studying the price fluctuation. In this paper, the linkage between West Texas Intermediate (WTI) crude oil futures prices and European carbon futures prices was investigated. In addition, this paper selects continuous data of WTI crude oil futures prices and spot prices with European carbon futures prices from January 8, 2018 to November 27, 2020, and builds a smooth transformation regression (STR) model. The relationship between crude oil futures and carbon futures prices is studied in both forward and reversal linkage through empirical analysis. The results show that crude oil futures prices and carbon futures prices have a mutual effect on each other, and both linear and nonlinear correlations between the two prices exist. Based on the results of this research, some suggestions are provided.

scholarly journals Distribution of carbon emission rights in China based on equity perspective

资源科学 ◽  
2019 ◽  
Vol 41 (10) ◽  
pp. 1801-1813
Author(s):  
Chao YANG ◽  
Lijun WU ◽  
Jiangfeng LI ◽  
Tianneng HUANG ◽  
Keyword(s):  
Carbon Emission ◽  
Emission Rights ◽  
Equity Perspective

scholarly journals Research on the Price Fluctuation and Risk Formation Mechanism of Carbon Emission Rights in China Based on a GARCH Model

2020 ◽  
Vol 12 (10) ◽  
pp. 4249 ◽  
Author(s):  
Jilin Zhang ◽  
Yukun Xu
Keyword(s):  
Carbon Emission ◽  
Garch Model ◽  
Statistical Characteristics ◽  
Mature Stage ◽  
Formation Mechanisms ◽  
Economic Downturn ◽  
Conditional Heteroskedasticity ◽  
Price Fluctuation ◽  
Price Series ◽  
Emission Rights

This paper examines the price of carbon emission rights published by the China Emissions Exchange (Shenzhen), analyzes the statistical characteristics of the price series and uses a generalized autoregressive conditional heteroskedasticity (GARCH) model to describe the price fluctuation of carbon emission rights and risk formation mechanisms. The study shows the following results: since 2013, China’s carbon emission rights prices have become more stable. The fluctuation of yield has gradually decreased and the market has approached a more mature stage. However, after 2018, due to factors such as the economic downturn and insufficient market information, the amplitude of price fluctuations has started to rise while frequency is increasing, which shows an asymmetry trend. The market trading risk is accumulating constantly.

Study on Influencing Factors of China’s Carbon Emission Rights Price

2014 ◽  
Vol 962-965 ◽  
pp. 1468-1471
Author(s):  
Shu Shu Huang ◽  
Jie Zhang
Keyword(s):  
Influencing Factors ◽  
Carbon Emission ◽  
Rapid Development ◽  
Secondary Market ◽  
Green Economy ◽  
Factor Demand ◽  
Effective Operation ◽  
Market Transaction ◽  
Emission Rights ◽  
The Mathematical Model

Complying with the rapid development of green economy, carbon emission has attracted more and more attention. For reducing carbon emission, carbon emission rights is endowed with scarcity and it is trading in the Secondary Market. Carbon market is just beginning in China. Moreover, the price of carbon emission rights is the key of effective operation of market transaction. The mathematical model was established, which included 4 factor-demand, supply, Policies and technology. Then, we separately analyse the four influencing factors and provide some references to establish an orderly domestic carbon emission market.

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