Enterprise Carbon Asset Valuation Based On Real Options Model

At present, climate change issue has been widely concerned around the world. In order to deal with climate change and to reduce carbon emissions, political and economic efforts have been made both in developed and developing countries. With regard to economic methods, there is a consensus that it is necessary to put price on carbon emissions, which aims to lead the energy-using enterprises to low carbon behaviors through introducing market mechanisms, i.e. the Emissions Trading Scheme. In China, people have realized that the carbon emissions can be regarded as a type of asset rather than costs. However, the definition of carbon asset as well as the value of it have not been worked out completely, which may to some extent lead the enterprises to take passive actions towards carbon trading.In this thesis, firstly we summarized the development of international and domestic carbon markets, defined the carbon asset both in a broad sense and narrow sense by comparison, and divided the carbon asset into allowance-based carbon asset and project-based carbon asset. Secondly, we summarized the characteristics, types and classic models of real options, and studied the feasibility of apply ingreal options model to valuation of the carbon asset. Then, we established the allowance-based carbon asset valuation model and the project-based carbon asset valuation model, thus the enterprise carbon asset valuation model. Last but not least, we verified the models by case study.