Risk Identification And Management Of My Country's Pilot Carbon Market

In recent years,along with economic globalization and financial liberalization,the linkage between financial markets has been increasingly enhanced.The linkage of financial markets has improved the efficiency of capital operation,but it has also become a channel for risk contagion.As an important part of the financial system,the carbon market is increasingly closely linked with other financial markets.Therefore,how to identify and evaluate risks in combination with the practice of China's pilot carbon market and from the perspective of the linkage of financial markets has become an important issue to be solved urgently.This article selects the Beijing,Shanghai,Guangdong,Shenzhen,Wuhan five pilot carbon market day yield data as the research object,using the entropy weight and TOPSIS model to depict the carbon price volatility risk and energy markets,foreign exchange market,the international carbon market,market,the relationship between climate results show that the pilot carbon market in China by oil futures closed,the mean temperature,EUA futures settled most significantly,the influence of natural gas futures prices is not obvious.Since these factors are all related to major financial markets,the research is carried out in the following part from the perspective of the linkage of financial markets:the GPD-Garch model is used to model the edge distribution of the tail data of return rates of each series to obtain the standard residual series,and on this basis,the Copula model is constructed to describe the correlation between risk factors and the pilot carbon market in China.Based on the complex model to measure the VaR at risk of China's pilot carbon market,empirical research results show that the risks of the five pilot carbon markets are similar and different,among which shenzhen and Guangdong pilot carbon markets have higher values than other pilot carbon markets in extreme volatility.Finally,based on the perspective of the linkage of financial market,the paper puts forward risk aversion strategies from the aspects of government,financial institutions and investors,etc.,and takes the pilot carbon market in Guangdong as an example to specifically design the strategy of using carbon futures trading to calm market fluctuations and avoid risks.The research results are expected to provide regulatory basis for the government,provide risk management scheme for investors,promote the healthy and sustainable development of China's carbon financial market,and maintain China's financial stability.