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

Authors: Huaiwen Zhang; Xinyu Wang; Yu Ma; Dongsheng Zhao

Addresses: School of Economics, Shanghai University, 2000444, Shanghai, China ' School of Economics and Management, North China University of Technology, 100144, Beijing, China ' School of Economics and Management, Beihang University, 100191, Beijing, China ' Department of Education, Anyang Preschool Education College, Zhonghua Road, Anyang, 455000, Henan Province, China

Abstract: The building of the carbon emissions trading market in China has been improved through the pilot trading of carbon emission and trading of pricing of carbon (PTCMTP). Hence, in this paper, PTCMTP establishes a theoretical and mathematical model to the value of carbon dioxide (CO2) pollution derivatives with stochastic yields of arbitration incentives theory. Therefore, the formulation of the price problem in two spatial dimensions to a direct parabolic variational inequality has been developed a penalty power approach to fix it. Further, establishing the market for carbon emissions trading under total emissions regulation as possible, to the leading alternatives for carbon emissions Rights strategies providing a common market for trade. In connection, several analytical tests are performed to demonstrate this method's validity and usefulness at real-time analysis. Finally, PTCMTP finds that the value of carbon emission derivatives is affected by the stochastic convenience yield and outperforms the drawbacks in pilot trading.

Keywords: carbon emission; pricing of carbon; linear parabolic; pilot trading; upgrading of industrial structure.

DOI: 10.1504/IJEP.2020.119686

International Journal of Environment and Pollution, 2020 Vol.68 No.1/2, pp.82 - 99

Accepted: 24 May 2021
Published online: 14 Dec 2021 *

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