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Research on carbon emission trading mechanisms: current status and future possibilities

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  • Yue-Jun Zhang

Abstract

In the year of 2005, the EU ETS came into effect. After then, carbon trading markets have been emerging across the world and a large number of studies have been conducted about the mechanisms of carbon trading. However, as an emerging market, carbon trading still faces many obstacles and needs more profound research support. For this reason, this paper reviews current related research progress on carbon trading market mechanisms, mainly including carbon emissions allowance allocation, carbon asset pricing and carbon price risk measurement. And then the paper discusses the limitations of existing research and puts forward some possible research directions in the future. Hopefully, the paper is helpful to better understand the research status and problems, and more importantly provide some references to optimise the carbon trading operations.

Suggested Citation

  • Yue-Jun Zhang, 2016. "Research on carbon emission trading mechanisms: current status and future possibilities," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 39(1/2), pages 89-107.
    • Handle: RePEc:ids:ijgeni:v:39:y:2016:i:1/2:p:89-107
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    3. Friedrich, Marina & Mauer, Eva-Maria & Pahle, Michael & Tietjen, Oliver, 2020. "From fundamentals to financial assets: the evolution of understanding price formation in the EU ETS," EconStor Preprints 196150, ZBW - Leibniz Information Centre for Economics, revised 2020.
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    6. Nader Trabelsi & Aviral Kumar Tiwari, 2023. "CO2 Emission Allowances Risk Prediction with GAS and GARCH Models," Computational Economics, Springer;Society for Computational Economics, vol. 61(2), pages 775-805, February.
    7. Zhang-Hangjian Chen & Xiang Gao & Apicha Insuwan, 2023. "Dynamic information spillover between Chinese carbon and stock markets under extreme weather shocks," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    8. M. Angeles Carnero & Jose Olmo & Lorenzo Pascual, 2018. "Modelling the Dynamics of Fuel and EU Allowance Prices during Phase 3 of the EU ETS," Energies, MDPI, vol. 11(11), pages 1-23, November.
    9. Lei Su & Wenjiao Yu & Zhongxuan Zhou, 2023. "Global Trends of Carbon Finance: A Bibliometric Analysis," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
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