A Study On The Risk Of China’s Carbon Finance Trading Market

The rapid development of the global economy in the 20 th century,while environmental issues have gradually highlighted,such as greenhouse gas emissions caused by increased global warming,has hindered the sustainable economic and social development.Climate change-related goods and services do not reflect the corresponding price,which is considered to be the largest market failure so far.In order to reduce the impact of climate change on world economic development,governments all agree that the pursuit of economic development should be accompanied by efforts to reduce greenhouse gas emissions and to achieve sustainable socio-economic development.The carbon finance market was developed in this context.Carbon finance is a financial approach to economic transformation and development.Therefore,the research on the risk of carbon finance market is carried out in this paper.In this paper,the background of carbon finance is briefly introduced,the domestic and foreign research literatures are collated,the relevant concepts and the research situation at home and abroad are summarized.At the same time,the shortcomings of predecessor research are pointed out.This paper analyzes the development of China’s carbon finance market and analyzes the risk structure of the carbon finance market,and combs the risk prevention and control measures of the carbon finance market in the European Union and provides reference for the construction of China’s carbon finance market.In this paper,the risk of carbon finance market is measured,and the source of the model is summarized.Copula model and ARMA-GARCH-Copula model are used to compute the risk value of carbon finance market,and the advantages of the two models are compared.This paper puts forward some suggestions on the construction of carbon finance market,such as perfecting the legal framework,standardizing the market behavior,constructing the prevention and control system,realizing the risk monitoring,establishing the unified market and increasing the market vitality and so on.At last,this paper makes a few comments.