Research On The Efficiency Of EU Carbon Futures Market

At present,climate change has become a key issue affecting human survival and development.In 1992,the United Nations General Assembly adopted the United Nations Framework Convention on Climate Change,and the Kyoto Protocol adopted in 1997 set the quantitative emission reduction targets of developed countries for the first time,and established the emission trading mechanism,joint implementation mechanism and clean development mechanism for their emission reduction activities.As of January 2021,there are 24 active carbon markets in the world,covering 16% of global greenhouse gas emissions.Among them,the super national mandatory emission reduction trading system(EU-ETS)established by the EU in 2003 is the carbon emission trading market with the longest running time,the largest trading volume,the most perfect system and the absolute dominant position in the world.At present,EUETS has completed three phases of operation and is in the fourth phase.In terms of trading products,it has carried out the trading of carbon spot,futures and other derivatives,of which futures trading accounts for more than 90%,which is the most important part of EU-ETS.At present,the operation of EU carbon futures market is gradually standardized and mature,it is the best developed carbon futures market in the world.From 2009 to 2020,the Chinese government has put forward three clear greenhouse gas emission reduction targets.Among them,in 2020,the Chinese government put forward the emission reduction target of controlling the total amount of greenhouse gas emissions for the first time,and promised to achieve "carbon peak" by 2030 and "carbon neutralization" by 2060.Since January 1,2021,China’s national carbon trading system has been put into operation,marking the official launch of the world’s largest carbon trading market.At present,China’s carbon trading system only has the spot trading markets,and the futures trading market has not been established.The trading system is not perfect and there are some problems,and carrying out carbon futures trading will be an effective solution.From 2018 to 2021,China has continuously promoted the preparations for the construction of carbon futures market,planned to support the construction of green financial reform and innovation pilot zone in Guangzhou,and established China’s first carbon futures exchange.Therefore,it is a general trend to launch carbon futures products in China in the future to cultivate a multi-level carbon trading market,constantly improve China’s carbon trading system,so as to change China’s low-end position in the international carbon trading value chain,and gradually strive for the initiative in the international carbon trading market.In terms of theoretical significance,the existing research on the efficiency of EU carbon futures market is only for one or two types of efficiency.In this dissertation,the information efficiency,operation efficiency,price discovery efficiency and hedging efficiency of the EU carbon futures market are studied separately,which can fill the gap of multi-efficiency research of EU carbon futures market.At the same time,this dissertation makes a comprehensive study on the four types of efficiency of the EU carbon futures market.This can not only fill the gap in the comprehensive research on the multi-efficiency of the EU carbon futures market,but also an important supplement to the comprehensive research on the multi-efficiency of the futures market.In terms of practical significance,this dissertation makes a comprehensive,systematic and comprehensive study on the efficiency of EU carbon futures market.First,it gives an objective and fair evaluation of the actual operation and development level of the EU carbon futures market,and finds out the relevant factors affecting the efficiency of the EU carbon futures market,which provides a research basis for formulating relevant policies when establishing and developing the carbon futures market in China.Second,it can strengthen the cognition and control ability of performing enterprises and investors on the carbon futures market,and provide more empirical reference and detailed information for exchanges and regulators to formulate relevant management measures,so as to reduce investment risks and ensure that the carbon futures market plays its due role.Third,it summarizes the experience and lessons of the operation and development of the EU carbon futures market,which will help China to do a good job in the top-level design in the construction and development of the carbon futures market,improve the efficiency level of the carbon futures market,and ensure the smooth operation and orderly development of the carbon futures market.According to the logical sequence of "research basis → research framework →practical research",this dissertation makes a comprehensive analysis on the efficiency of EU carbon futures market from many aspects and perspectives.The specific content includes 9 chapters: Among them,Chapter 1 is the introduction,including research background and significance,literature review,research objectives and problems to be solved,research ideas and main contents,research scope and data sources,research methods,innovations and deficiencies.Chapter 2 is the theoretical basis and research framework system construction.This chapter first introduces the theoretical basis of the research,and then constructs the system framework of EU carbon futures market efficiency research.Chapter 3 is an overview of the development of EU carbon futures market.This chapter mainly introduces the development process,basic organizational structure and basic operation of EU carbon futures market.Chapter 4 to Chapter 7 are the research on the information efficiency,operation efficiency,price discovery efficiency and hedging efficiency of the EU carbon futures market.It includes two parts:general theoretical analysis and empirical analysis.Chapter 8 is a comprehensive analysis of the efficiency of the EU carbon futures market.This chapter makes a comprehensive analysis of the four types of efficiency of the EU carbon futures market from both theoretical and empirical aspects.Chapter 9 is the research conclusion and enlightenment.The main conclusions and Enlightenment of this paper are as follows:First,there is a complex correlation between the four types of efficiency of the EU carbon futures market.Therefore,when establishing and developing the carbon futures market,China should also comprehensively,systematically and comprehensively grasp the complex impact of these four types of efficiency on the efficiency of China’s carbon futures market.Second,on the whole,the efficiency level of EU carbon futures market is developing from low to high,which is in line with the general development law of futures market efficiency.Therefore,when establishing and developing the carbon futures market,China should make a bold attempt.It can take the three-step approach of simulated trading,experimental trading and formal trading to establish China’s carbon futures market as soon as possible and promote the healthy development of the whole carbon trading system.Third,on the whole,the efficiency levels of the four types of efficiency of the EU carbon futures market are highly consistent,but there are also inconsistent situations under the influence of some factors.Therefore,when China establishes and develops the carbon futures market,it is necessary to do a good job in the top-level design of the market mechanism to fundamentally ensure the normal operation of the market.And maintain the continuity and stability of emission reduction policies and reduce the negative impact of missing or significant changes in policies on the market.And do a good job in the risk prevention plan to deal with emergencies,so as to improve the market’s ability to deal with various risk shocks.Fourth,on the whole,the change patterns of the four types of efficiency of the EU carbon futures market are not the same.Among them,the change patterns of operational efficiency and price discovery efficiency have a strong identity,the reason may be that both are closely related to the liquidity of the market.Therefore,when establishing and developing the carbon futures market,China can enhance the liquidity of the market by reducing the minimum quotation unit,introducing the market maker system,and encouraging performing enterprises and financial institutions to actively participate in trading,so as to promote the operation efficiency and price discovery efficiency of China’s carbon futures market.Fifth,the development and changes of the efficiency of the EU carbon futures market not only follow the general development law of the efficiency of the futures market,but also have their own uniqueness.Therefore,when China establishes and develops the carbon futures market,it should not only refer to the experience and lessons of the development of the EU carbon futures market,but also be based on the actual situation of the development of China’s carbon trading system,and give full play to the system of the socialist market economy with Chinese characteristics.So as to walk down a road to improve the efficiency of carbon futures market with Chinese characteristics.