A research about the Factors affecting the Carbon Emission Trading Price in China

中国碳排放权交易价格影响因素研究

This paper analyses the factors influencing the price of carbon emissions trading from macro and micro perspectives, and uses a VAR model to further analyse the possible mechanisms of carbon price formation. The empirical results show that the logarithmic return of the HBEA is mainly influenced by its own historical data, which reflects the inefficiency of the carbon trading market. The variability of crude oil prices and the EUA log return also have an impact on the HBEA log return.In particular, crude oil price volatility has a positive impact on HBEA log returns, while EUA log returns have almost no impact on HBEA log returns. The impact of the log return on coal futures prices and the log return on market indices on the HBEA log return is relatively small. Finally, this paper puts forward policy recommendations to improve relevant energy policies, raise enterprises' awareness of carbon trading, and promote the development of carbon financial derivatives market. Keywords: carbon pricing, influencing factors, VAR model

Based on the study of China's carbon emissions trading market and the analysis of the factors influencing the price of carbon emissions trading, this paper makes the following recommendations.
First, the paper suggests that energy policies should be improved to promote the development of a low carbon economy.Secondly, this paper suggests that the awareness of carbon trading among enterprises should be raised and regional differences should be coordinated.Thirdly, it is necessary to promote the development of a carbon finance derivative market to increase the liquidity of carbon emissions trading.