A Novel Forecasting Framework for Carbon Emission Trading Price Based on Nonlinear Integration

The complex features of carbon price, such as volatility and nonlinearity, pose a serious challenge to accurately predict it. To this end, this paper proposes a novel forecasting framework for carbon emission trading price based on nonlinear integration, including feature selection, deep learning an...

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Main Authors: Rulin Gao, Jingyun Sun
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/13/10/1624
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author Rulin Gao
Jingyun Sun
author_facet Rulin Gao
Jingyun Sun
author_sort Rulin Gao
collection DOAJ
description The complex features of carbon price, such as volatility and nonlinearity, pose a serious challenge to accurately predict it. To this end, this paper proposes a novel forecasting framework for carbon emission trading price based on nonlinear integration, including feature selection, deep learning and model combination. Firstly, the historical carbon price series are collected and collated, and the factors affecting the carbon price are analyzed. Secondly, the data are downscaled and the input variables are screened using the max-relevance and min-redundancy. Then, the three integrated learning models are combined with the neural network model through nonlinear integration to construct a hybrid prediction model, and the best performing combined model is obtained. Finally, interval prediction is realized on the basis of point prediction. The experimental results show that the prediction model outperforms other comparative models in terms of prediction accuracy, stability and statistical hypothesis testing, and has good prediction performance. In summary, the hybrid prediction model proposed in this paper can not only provide high-precision carbon market price prediction for government and enterprise decision makers, but also help investors optimize their trading strategies and improve their returns.
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spelling doaj-art-85ec93b8fe7d47ee971431e7be3e22632025-08-20T03:47:57ZengMDPI AGMathematics2227-73902025-05-011310162410.3390/math13101624A Novel Forecasting Framework for Carbon Emission Trading Price Based on Nonlinear IntegrationRulin Gao0Jingyun Sun1School of Statistics and Data Science, Lanzhou University of Finance and Economics, Lanzhou 730020, ChinaSchool of Statistics and Data Science, Lanzhou University of Finance and Economics, Lanzhou 730020, ChinaThe complex features of carbon price, such as volatility and nonlinearity, pose a serious challenge to accurately predict it. To this end, this paper proposes a novel forecasting framework for carbon emission trading price based on nonlinear integration, including feature selection, deep learning and model combination. Firstly, the historical carbon price series are collected and collated, and the factors affecting the carbon price are analyzed. Secondly, the data are downscaled and the input variables are screened using the max-relevance and min-redundancy. Then, the three integrated learning models are combined with the neural network model through nonlinear integration to construct a hybrid prediction model, and the best performing combined model is obtained. Finally, interval prediction is realized on the basis of point prediction. The experimental results show that the prediction model outperforms other comparative models in terms of prediction accuracy, stability and statistical hypothesis testing, and has good prediction performance. In summary, the hybrid prediction model proposed in this paper can not only provide high-precision carbon market price prediction for government and enterprise decision makers, but also help investors optimize their trading strategies and improve their returns.https://www.mdpi.com/2227-7390/13/10/1624carbon price predictionhybrid forecasting modeldeep learningnonlinear ensemble
spellingShingle Rulin Gao
Jingyun Sun
A Novel Forecasting Framework for Carbon Emission Trading Price Based on Nonlinear Integration
Mathematics
carbon price prediction
hybrid forecasting model
deep learning
nonlinear ensemble
title A Novel Forecasting Framework for Carbon Emission Trading Price Based on Nonlinear Integration
title_full A Novel Forecasting Framework for Carbon Emission Trading Price Based on Nonlinear Integration
title_fullStr A Novel Forecasting Framework for Carbon Emission Trading Price Based on Nonlinear Integration
title_full_unstemmed A Novel Forecasting Framework for Carbon Emission Trading Price Based on Nonlinear Integration
title_short A Novel Forecasting Framework for Carbon Emission Trading Price Based on Nonlinear Integration
title_sort novel forecasting framework for carbon emission trading price based on nonlinear integration
topic carbon price prediction
hybrid forecasting model
deep learning
nonlinear ensemble
url https://www.mdpi.com/2227-7390/13/10/1624
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