Quantitative Modeling of Emission Markets

摘要: The introduction of marketable pollution rights is considered as an appropriate way to combat environmental problems on a global scale. According theoretical arguments, properly designed emission trading system should help reaching reduction at low social costs. Nowadays, markets are being established around the world. Their practice provides stress test for underlying economic theory and raises lively discussion about advantages shortcomings trading. In this work, we highlight some core principles quantitative understanding elaborate mathematical applications, arising in context.