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arXiv · 1011.5792

On fair pricing of emission-related derivatives

Juri Hinz·Alex Novikov
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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.

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Juri Hinz, Alex Novikov. 2010-11-26. On fair pricing of emission-related derivatives. https://doi.org/10.3150/09-bej242

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