I mean the formula for obtaining the price through the demand and supply of emission allowance credits
I am currently working on Malaysia Energy Decarbonization. Emission trading scheme has been seen as a promising economic tool toward low carbon power generation. I need to model the carbon market via allocation and carbon price determination. I will appreciate if you can help with the mecahnism(formula) along with appropraite refrence. Thanks
According to the US Department of Energy, carbon price rages from $30 to $40 per ton. I've attached a simple and accurate formula for calculating the carbon price.
Hope this helps answer your question.
Professor Yehia Khalil, Yale University, USA
Fellow of the University of Oxford, UK
Thank you, prof
I really appreciate your response and attached article. Having gone through the paper, I realised that the formula is for the social cost of carbon (Price) to the society. But in my study, I want to simulate the price of CO2 permits through the demand and supply of allowance. That is how different agents interact to form emission allowance price within the simulated market?
http://www.sciencedirect.com/science/article/pii/S092180091400161X
Check out the InterAgency Task Force (US) for their comprehensive estimates of the Social Cost of Carbon. In addition U.S. Appellate Court has agreed that $36 per tonne is appropriate for federal rule making and regulations. Also see the Economist article on how different corporations value Carbon for their internal business and financing decisions.
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