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Innovative mathematical models for emissions trading

03.11.2024|23:06 Uhr

CO2 emissions trading

The researchers want to develop a deeper understanding of the mechanisms that influence the prices of emission allowances and renewable energy certificates. // Photo Colourbox

Emissions trading is a key instrument in the fight against climate change. The introduction of CO2 certificates incentivises companies to reduce their emissions. A research project at the University of Wuppertal aims to make this system even more efficient by developing new mathematical models. These models should help to predict the prices for emission certificates and certificates for renewable energies more accurately.

The APMANA-EAREC project aims to unravel the complex financial mechanisms behind emissions trading and renewable energy. The researchers use advanced mathematical methods to model the complex relationships between energy markets, environmental factors and financial markets. The models developed are intended to help companies and politicians make better decisions in the area of climate protection. "APMANA-EAREC is an important step towards more efficient and transparent emissions trading," says Prof Dr Matthias Ehrhardt, who is leading the project on the Wuppertal side. The researchers want to develop a deeper understanding of the mechanisms that influence the prices of emission allowances and renewable energy certificates. The aim is to create more accurate forecasts for future price developments. "Our research could lead to the development of new financial instruments that help companies adapt to climate change," says Ehrhardt. The APMANA-EAREC project, led by Prof Dr Matthias Ehrhardt (University of Wuppertal) and Prof Dr Carlos Vázquez-Cendón (University of A Coruña), is funded over four years by the Agencia Estatal de Investigación (AEI) and the German Research Foundation (DFG) and includes two doctoral positions. Further information can be found on the project website: link www-amna.math.uni-wuppertal.de/~ehrhardt/Projects/APMANA-EAREC.html

Last modified: 11.12.2023

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