Affiliation(s): 

^†School of Economics and Management, North China Electric Power University, Baoding 071003, China, ‡School of Engineering, University of St. Thomas, St. Paul, MN, 55105-1079, USA

 

Cite this paper

 

Document Type: Research Article

 

View Fulltext: PDF

 

Abstract

From the macro point of view, at this stage it mainly includes carbon assets of CDM emission reduction and carbon assets of quotas in developing countries. At present, China is the largest side of CDM carbon reduction supply. How to assess the value of CDM assets carbon related our investment decisions and value maximization of the project. CDM carbon emission reduction benefits is independent from the main revenue of the project, its value greatly influenced by the price of carbon emissions. Therefore, it is necessary to study a reasonable carbon price forecasting method. According to the characteristics of CDM carbon assets, the use of Monte Carlo simulation method to predict the price of carbon, and thus establish a carbon assets valuation model, is expected to more truly reflect the value of the CDM carbon emissions reduction assets. This is conducive to enterprise participate in CDM projects to price carbon emissions and it is in favor of domestic mandatory quotas trading companies to determine the value of quota carbon assets. It is conducive to enhance the Chinese voice in the international pricing of carbon trading, maximize the value of CDM carbon assets and promote the development of emission reduction in China.

 

Keywords
pCER; carbon assessment; Monte-Carlo simulation.

 

References

[1] Zeng Ying-miao. Value research of CDM Carbon Emission Reduction Projects Based on Real Option. Master Degree Paper, Hunan University, 2010.
[2] A. Denny Ellerman, Annelene Decaux. Analysis of Post-Kyoto CO2 emission trading using marginal abatement Curves. working paper, MIT: global change joint program.
[3] Holtsmark, B., Maestad, 0. Emissions trading under the Kyoto Protocol. Effects on fossil fuel markets under alternative regimes. Energy Policy, 2002 (30): 207 - 218.
[4] Kanen J L M. Carbon trading and pricing. Environmental finance publications. London, 2006.
[5] Mansanet-Bataller M, Pardo A, Valor E. CO2 prices, energy and weather. Energy Journal, 2007, 28(3): 73-92.
[6] Wei Yi-ming, Liu Lan-cui, Fan Ying, Wu Gang. China's Energy Report (2008): Carbon Emission Research. Beijing: science press.
[7] Tan Ming. Pricing Research of CDM Project of Carbon Emission Rights Based on Game Theory. Master Degree Paper, Hunan University, 2010.
[8] Nie Li. The Trading Game Analysis of China's Carbon Emissions Rights. Doctor Degree Paper, Capital University of Economics and Business, 2013.
[9] Zhao Pei-pei. The Application of CDM Projects' Value Analysis of Real Option in China. Master Degree Paper, Jiangnan University, 2012.
[10] Chen Xiao-hong, WANG She-jun. Empirical Research on Carbon Emissions Trading Price Influencing Factors -- EU Emissions Trading System (EU ETS) as an example. Journal of Systems Engineering, 2012, 30(2):53-70.
[11] Guo Wen-jun. Research of China's Regional Carbon Emissions Price Influence Factors -- Based on Adaptive Lasso Method. China Population Resources and Environment, 2015, 25(5):305-310.
[12] Ding Yang. The Research on Influence Factors of Domestic Carbon Price Based on GEN Method--Carbon Emissions Exchange Price in Shenzhen as an example. Times Finance, 2015, 4: 291-292.
[13] Yao Bi-qing. The Analysis of Risks and Benefits of the CDM Market Based on the Monte Carlo Simulation Method. Master Degree Paper, Hunan University, 2012.
[14] XunZhi-jian, CHEN Rui. An Empirical Analysis of the Carbon Emission Rights Market Price Discovery Function. Shanghai Financial, 2011, 7: 78-81.
[15] Zhou Li-fang. The Application of the Monte Carlo Simulation in the Commercial Bank Credit Risk Management. Master Degree Paper, Hebei University, 2013.

 

Copyright @ 2017 by authors and JMERD.This work is licensed under the Creative Commons Attribution International License (CC BY 4.0).http://creativecommons.org/licenses/by/4.0/