Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump Diffusion

In order to explore carbon market regulation mechanism more effectively, based on carbon accumulation model with jump diffusion, this paper studies the carbon price from two perspectives of quantity instrument and price instrument and quantitatively simulates carbon price regulation mechanisms in th...

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Main Authors: Dongmei Guo, Yi Hu, Bingjie Zhang
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2014/135818
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author Dongmei Guo
Yi Hu
Bingjie Zhang
author_facet Dongmei Guo
Yi Hu
Bingjie Zhang
author_sort Dongmei Guo
collection DOAJ
description In order to explore carbon market regulation mechanism more effectively, based on carbon accumulation model with jump diffusion, this paper studies the carbon price from two perspectives of quantity instrument and price instrument and quantitatively simulates carbon price regulation mechanisms in the light of actual operation of EU carbon market. The results show that quantity instrument and price instrument both have certain effects on carbon market; according to the comparison of the elasticity change of the expected carbon price, comparative advantages of both instruments rely on the price of carbon finance market. Where the carbon price is excessively high, price instrument is superior to quantity instrument; where carbon price is excessively low, quantity instrument is better than price instrument. Therefore, in the case of carbon market regulation based on expected carbon price, if the carbon price is too high, price instrument should prevail; if the carbon price is excessively low, quantity instrument should prevail.
format Article
id doaj-art-d18f5020362e462fb987585e68a2b370
institution OA Journals
issn 1026-0226
1607-887X
language English
publishDate 2014-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-d18f5020362e462fb987585e68a2b3702025-08-20T02:19:55ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/135818135818Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump DiffusionDongmei Guo0Yi Hu1Bingjie Zhang2School of Economics, Central University of Finance and Economics, Beijing 100081, ChinaSchool of Management, University of Chinese Academy of Sciences, Beijing 100190, ChinaSchool of Economics and Management, Beihang University, Beijing 100083, ChinaIn order to explore carbon market regulation mechanism more effectively, based on carbon accumulation model with jump diffusion, this paper studies the carbon price from two perspectives of quantity instrument and price instrument and quantitatively simulates carbon price regulation mechanisms in the light of actual operation of EU carbon market. The results show that quantity instrument and price instrument both have certain effects on carbon market; according to the comparison of the elasticity change of the expected carbon price, comparative advantages of both instruments rely on the price of carbon finance market. Where the carbon price is excessively high, price instrument is superior to quantity instrument; where carbon price is excessively low, quantity instrument is better than price instrument. Therefore, in the case of carbon market regulation based on expected carbon price, if the carbon price is too high, price instrument should prevail; if the carbon price is excessively low, quantity instrument should prevail.http://dx.doi.org/10.1155/2014/135818
spellingShingle Dongmei Guo
Yi Hu
Bingjie Zhang
Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump Diffusion
Discrete Dynamics in Nature and Society
title Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump Diffusion
title_full Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump Diffusion
title_fullStr Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump Diffusion
title_full_unstemmed Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump Diffusion
title_short Carbon Market Regulation Mechanism Research Based on Carbon Accumulation Model with Jump Diffusion
title_sort carbon market regulation mechanism research based on carbon accumulation model with jump diffusion
url http://dx.doi.org/10.1155/2014/135818
work_keys_str_mv AT dongmeiguo carbonmarketregulationmechanismresearchbasedoncarbonaccumulationmodelwithjumpdiffusion
AT yihu carbonmarketregulationmechanismresearchbasedoncarbonaccumulationmodelwithjumpdiffusion
AT bingjiezhang carbonmarketregulationmechanismresearchbasedoncarbonaccumulationmodelwithjumpdiffusion