Carbon Emission Trading Pricing Characteristics: Observation about Three Carbon Emission Exchanges in China

Cross-Section and Longitudinal study is applied to analyze the selected data sample regarding carbon trading markets’ prices of Beijing, Tianjing, Shenzhen in China from 2018 to 2020. This study indicates that pricing volatility of three carbon trading markets is different, the highest and lowest level of prices is extremely different. It further finds out that the carbon prices in question comparatively features an extreme standard deviation, which suggests that the trading risk is obviously high in three regions of carbon emission trading markets. Based on these findings, we propose three regulatory suggestions concerning price stability in China's carbon emission trading market. First, the mechanism carbon emission allowances allocation should be nationally unified; secondly, free carbon emission allowances mechanism should be combined with carbon emission auction system; thirdly, financial innovation of carbon trading market should be strengthened.