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

Authors: Yue-Jun Zhang

Addresses: Business School of Hunan University, Changsha 410082, China; Center for Resource and Environmental Management, Hunan University, Changsha 410082, China

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.

Keywords: carbon emissions allowance; carbon trading markets; carbon market mechanisms; carbon emission trading; CO2; carbon dioxide; carbon asset pricing; carbon price risk measurement; risk assessment.

DOI: 10.1504/IJGEI.2016.073965

International Journal of Global Energy Issues, 2016 Vol.39 No.1/2, pp.89 - 107

Received: 08 Jul 2014
Accepted: 27 Sep 2014

Published online: 29 Dec 2015 *

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