Research On Carbon Financial Market Volatility And Risk Management

At present,due to the excessive emission of carbon dioxide,the world has a problem of warm weather.Based on this background,the emission right is regarded as a scarce resource,which can be traded on the market,and the regulation of market mechanism can achieve the emission reduction target,which has become an effective means of economic emission reduction.Since 2005,the trading market of carbon emission rights has been implemented in foreign countries.The Kyoto protocol has been implemented since 2005.The Kyoto protocol has been set up in three ways,and carbon finance has emerged.The carbon financial market is the general term for the trading of greenhouse gas emission rights and related financial activities.It provides a trading platform for carbon financial activities.At the same time,carbon financial markets,like other financial markets,are characterized by volatility,which brings risks to the trading subject.Although the Kyoto protocol is due,the world’s countries have failed to agree on a second promise.Due to the increase of uncertainty,the price fluctuation of carbon emission is fierce and the risk is increased.Therefore,the study of the volatility of carbon financial market,recognizing and avoiding risks,becomes a real problem that needs to be solved.The research object of this article is the carbon financial market.Firstly,it introduces the significance of the research,describes the content,thought,innovation and deficiency of the research,and defines the relevant concepts of carbon finance market.Secondly,the current situation of carbon financial market is analyzed.Once again,as the market fluctuation is mainly expressed through price volatility,this paper takes the European climate exchange of CER futures price as the research object,using GARCH model,through the empirical comparison of the volatility of two commitment periods,the fluctuation characteristics of the second commitment period are analyzed,and the conclusion of the increase of risk is obtained.Based on this,the risk sharing model of carbon trading project is constructed,and taking the CDM project in China as an example,we use the theory of game theory,establish a risk-sharing model.so as to avoid the risk.At last,the risk management countermeasure is proposed to provide decision support for government and carbon trading subjects.