A Forward-Backward SDEs Approach to Pricing in Carbon Markets

Contains a case study of the UK energy market

Provides a description of carbon markets, which are being implemented worldwide, and their role in the mitigations of climate change

Contains an introduction to forward-backward stochastic differential equations (FBSDE) and their application to carbon markets

Provides a description of carbon markets, which are being implemented worldwide, and their role in the mitigations of climate change Most sections are accessible to practitioners in the energy sector and climate change policy-makers Contains a case study of the UK energy market Contains an introduction to forward-backward stochastic differential equations (FBSDE) and their application to carbon markets Includes supplementary material: sn.pub/extras

Zusammenfassung

Contains a case study of the UK energy market

Provides a description of carbon markets, which are being implemented worldwide, and their role in the mitigations of climate change

Contains an introduction to forward-backward stochastic differential equations (FBSDE) and their application to carbon markets

Inhalt
1 A description of the carbon markets and their role in climate change mitigation.- 2 Introduction to Forward-Backward Stochastic Differential Equations.- 3 A mathematical model for carbon emissions markets.- 4 Numerical approximation of FBSDEs.- 5 A case study of the UK energy market.- References.