Market Risk Comparative Study On Chinese And The European Union’s Carbon Trading Market

Under the impetus of the international climate negotiations to coase theory of property rights trading international carbon emissions trading market gradually establish, mature market mechanism, expanding the size of the market, however, with the development of carbon trading market, its market risk problem is becoming more and more get the attention of people. Along with the rapid development of action on climate change and the international carbon market and carbon market and the financial attribute has become one of research hotspots energy economy. Carbon market price fluctuations involves the comprehensive influence of various factors, thus makes the carbon trading market face a greater risk of unpredictable, this risk may be to participate in carbon trading companies and other investment institutions bring economic losses, affected the confidence of market participants, hindered the development of carbon trading market. And the risk of main show is the carbon price volatility, namely carbon trading market price risk, especially with the advent of the era of after Kyoto, the carbon price fluctuations of more obvious, the risk of carbon trading market gradually.Carbon trading market in China has just started in 2013, and only seven regional pilot market, the market mechanism is still not perfect, the market risk is bigger, the eu carbon trading market since the beginning of trial operation in 2005, has passed nearly 10 years of development, relatively perfect market mechanism, market risk has been effectively controlled.The purpose of this paper is to through the study of the market in China and the eu carbon trading market risk problem, prove that carbon trading market in China is the eu carbon trading market is still not perfect, the market risk is bigger, still still need to learn from the eu carbon trading market, as soon as possible to establish suitable for carbon trading market trading mechanism of China’s actual situation, risk control, make the carbon trading market to get better development in our country. First of all, based on the theory of comparative analysis on the system with the eu carbon trading market in China is different, it is concluded that the main problems of the carbon trading market in China and the eu carbon trading market is worth reference. Then, in this paper, by using the heteroscedasticity said regional carbon city of extreme risk; With the GARCH(1, 1), the ARCH(1) on behalf of the family of the ARCH model under the parameter estimation of different carbon trading market on the impact of price different attenuation speed; Every day by species of the ARCH model calculation of VaR on behalf of the carbon market risk in financial markets, and then compared with the eu carbon trading market in China the size of the market risk. Finally, according to the previous analysis, this paper based on the experience of the eu carbon trading market, the risk prevention and control of the carbon trading market in China put forward the corresponding countermeasures and Suggestions.