Research Article
Valuation of Carbon Emission Rights Based on Shadow Price Approach - An Example of Pilot Provinces in China
@INPROCEEDINGS{10.4108/eai.7-7-2023.2338045, author={Luorao Yang and Zhiguang Guo and Juan Chen}, title={Valuation of Carbon Emission Rights Based on Shadow Price Approach - An Example of Pilot Provinces in China}, proceedings={Proceedings of the 2nd International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2023, July 7--9, 2023, Chongqing, China}, publisher={EAI}, proceedings_a={FFIT}, year={2023}, month={10}, keywords={carbon trading; value of carbon emission rights; shadow price; transcendental logarithmic production function}, doi={10.4108/eai.7-7-2023.2338045} }- Luorao Yang
Zhiguang Guo
Juan Chen
Year: 2023
Valuation of Carbon Emission Rights Based on Shadow Price Approach - An Example of Pilot Provinces in China
FFIT
EAI
DOI: 10.4108/eai.7-7-2023.2338045
Abstract
The current volatile price of carbon trading in China requires a reasonable reference price, and research on the value of carbon emission rights is urgent. In this paper, the value of carbon emission rights in seven provinces and cities of Beijing, Tianjin, Shanghai, Fujian, Guangdong, Hubei and Chongqing from 2014 to 2021 is studied by constructing transcendental logarithmic production function and using shadow price method. It is found that the shadow prices of carbon emission rights in seven provinces and cities in China show a rising trend year by year, and all of them are significantly higher than the average transaction price. However, there are geographical differences, among which Beijing has the highest carbon emission rights value price with an average shadow price of 98,305.84 yuan per ton; Tianjin has the lowest carbon emission rights value with an average shadow price of 18,917.64 yuan per ton. It can be seen that the current carbon trading market is not well developed and the current trading price does not reflect the true value of carbon emission rights.