English

On fair pricing of emission-related derivatives

Statistics Theory 2010-11-29 v1 Pricing of Securities Statistics Theory

Abstract

Tackling climate change is at the top of many agendas. In this context, emission trading schemes are considered as promising tools. The regulatory framework for an emission trading scheme introduces a market for emission allowances and creates a need for risk management by appropriate financial contracts. In this work, we address logical principles underlying their valuation.

Keywords

Cite

@article{arxiv.1011.5792,
  title  = {On fair pricing of emission-related derivatives},
  author = {Juri Hinz and Alex Novikov},
  journal= {arXiv preprint arXiv:1011.5792},
  year   = {2010}
}

Comments

Published in at http://dx.doi.org/10.3150/09-BEJ242 the Bernoulli (http://isi.cbs.nl/bernoulli/) by the International Statistical Institute/Bernoulli Society (http://isi.cbs.nl/BS/bshome.htm)