Comparative Analysis of Factors Affecting Carbon Prices in China and Europe

Abstract

Global warming has become a hot issue of common concern to the international community in recent years. With the frequent occurrence of extreme weather events, reducing carbon dioxide emissions has become a priority for governments. The Paris Agreement makes it possible to connect carbon trading platforms of various countries and set up a global carbon emission rights exchange. The carbon price is affected by many factors, among which energy price, economic indicators and temperature are important factors. This paper compares how carbon prices fluctuate in response to different influencing factors in China and Europe. The reason for these differences is that China and Europe have different emission reduction policies, economic systems and energy structures. Research shows that the same influencing factor has a different impact on the carbon price in China and Europe. Participants in carbon trading may find this study useful in helping them comprehend the variations between the carbon trading markets in China and Europe.