Carbon Market

Carbon markets, mechanisms for incentivizing emissions reduction through the trading of carbon allowances, are a crucial tool in mitigating climate change. Current research focuses on improving the accuracy and efficiency of these markets, employing advanced modeling techniques such as multi-agent reinforcement learning, quantile regression, and hybrid deep learning architectures (e.g., GARCH-GRU) to predict carbon prices and optimize trading strategies. These efforts aim to enhance the effectiveness of carbon pricing policies, address issues like carbon leakage and inequality, and provide more robust decision-making tools for governments and businesses. The ultimate goal is to create more efficient and equitable carbon markets that effectively drive down greenhouse gas emissions.