Consider The Option Contract And Coordination Mechanisms In Carbon Emission Trading

At present,the process of global warming is accelerating,and the resulting catastrophic weather is threatening the safety of human life and property.Countries all over the world urgently need to take concrete actions to control greenhouse gas emissions.In this background,the carbon trading market is booming.By actively participating in the carbon market,companies in each region can pay carbon price to obtain corresponding carbon emissions.Since its formation,the carbon price has been rising repeatedly with great uncertainty,which virtually amplifies the risk of future cost increase for the buyers of carbon emission rights.In this case,it is very necessary to introduce the option contract with the function of price discovery and avoiding future risks.This paper constructs a two-echelon supply chain consisting of one supplier and one manufacturer based on the call option contract.The underlying asset is carbon emission quota.The supplier is the leader and seller of carbon trading,and the manufacturer is the follower and buyer.This paper discusses the effect of signing call option contract on the enterprises of the carbon trading,obtains the specific impact of future carbon emission quota market price and the strike price on suppliers and manufacturers,respectively.Then we introduces three common supply chain coordination mechanism: cost sharing(CS),revenue sharing(RS)and equity investment(EI),compares the optimal decision variables and profit,and continues to analyse whether these mechanism can achieve the overall coordination of the carbon option trading.Based on the numerical simulation examples,the following conclusions are available for this paper.The overall coordination of the carbon option trading can be realized by adjusting the coordination parameters of the three mechanism.Specifically,for the seller of carbon emission trading,choosing carbon option contract combined with revenue sharing mechanism or equity investment mechanism can increase sales profits;for buyer,cost sharing mechanism is the best way.This paper provides alternative coordination mechanism strategies for carbon emission traders,and also provides theoretical support for the current development of carbon option trading and stimulates the vitality of the carbon financial market.