Value Evaluation Of Carbon Emission Rights Based On Option Pricing Model

In December 2020,the Climate Ambition Summit was held in Beijing.In a speech delivered by General Secretary Xi Jinping,my country should limit the total emissions of carbon dioxide and other greenhouse gases that China should make in response to global climate change,and in order to achieve this carbon goal,The total amount of carbon emissions should be made clearer.The clearest view is to reduce carbon emissions in recent years.However,during the booming stage of my country’s industrial development,blindly reducing carbon emissions and demand is not Very reliable method.In addition,the best way is to create incentives for the capital side,form investment on the supply side,and promote the use of low-carbon and new energy sources to weaken total carbon emissions.The main incentive for investment is quota trading.Enterprises with more carbon emissions should assume part of their social responsibilities and make a series of emissions reduction investments.At present,my country’s carbon emission rights trading is mainly concentrated in the seven provinces and cities of Tianjin,Beijing,Shanghai,Chongqing,Hubei,Guangdong and Shenzhen.The market is not unified enough,and there are differences in carbon prices in various regions.The price determination is not standard enough.Under the environment,the general trend of carbon allowance trading has given birth to the evaluation of the value of my country’s carbon emission rights.Since carbon emission rights have the attributes of various types of assets,the use of three traditional asset evaluation methods to evaluate the value of carbon emission rights has certain inapplicability.This article first defines the related concepts of carbon emission rights and the trading market of carbon emission rights,and a series of descriptions of the trading process of carbon emission rights.Secondly,according to the asset nature and value characteristics of carbon emission rights,this article believes that the value of carbon emission rights includes two parts,the possible future income and the value of options,which is applicable to the appraisal of carbon emission rights using various traditional asset evaluation methods.Analyze its limitations and find out a suitable method for evaluating the value of carbon emission rights.Use the Black-Scholes option pricing model under the real option method to evaluate the value of carbon emission rights.According to the characteristics of carbon emission rights asset trading,the value of carbon emission rights is evaluated.The data is determined and revised to determine the value of the carbon emission rights in the transaction.This article selects Juhua Co.,Ltd.as a case to analyze and study its actual carbon emissions trading,and verify the scientificity of the constructed model based on its actual transaction value.Finally,it summarizes the shortcomings of the Black-Scholes option pricing model to evaluate the value of carbon emission rights in this paper,and puts forward some suggestions for how to continue to promote the value evaluation of carbon emission rights in my country,and provides a practical basis for the value evaluation of carbon emission rights.