A Study On Factors Of Carbon Market Price Based On EMD Model

Carbon emissions market as a new financial product markets, which is attractingthe attention of more global investors. As the development of the carbon market，the price of carbon emissions market has become the key research point. Thereare many factors that affecting the price for carbon market, and the strongnonlinear and non-stationary of carbon price, which makes it more complexwhen studying this topic.As science advances, financial research provides us with new tools. The empiricalmode decomposition (EMD) is one of those which has a huge advantage inanalyzing complex signals, especially in the non-linear non-stationary dataprocessing.In this paper, I collected opening price of carbon emission futures, which covered1133trading days from October13,2009to January17,2014. Using the EMDmodel, I broke down the market price of carbon market into intrinsic modefunctions (IMF), and reshape it into three sequences, short-term, medium-termand long-term sequences, through fine-to-coarse reconstruction. Separately, tryto discussions and find out the factors that affect upon the pricing process of themarket. And try to provide a new explanation for the volatilities, and to draw anew direction upon the research.