carbon trading

mj · Post by mj » Tue Oct 09, 2007 7:51 am

anyone know of any mathematical problems in this area?

Path Integral · Post by **Path Integral** » Tue Oct 09, 2007 10:29 am

I haven't done a lot of in depth digging but here's some links I found interesting:

http://www.fam.tuwien.ac.at/~michel/

http://robson.birs.ca/~07ss081/CarmonaIII.pdf

Hope this helps Beer

Patrik · Post by **Patrik** » Wed Oct 10, 2007 1:20 am

It's not really about maths or models. It may be at some stage but so far that's not the way to go about making money in carbon.

mj · Post by mj » Wed Oct 10, 2007 3:15 am

i take the point.

However, it's the way for ME to make money! Also, it's good to get in at the beginning...

So if anyone's working in this area and can suggest some math problems I'd be interested.

HeatOilTrader · Post by **HeatOilTrader** » Wed Oct 10, 2007 6:13 am

I know of several quants that are working/have worked for CantorCO2e, Point Carbon, etc and all said it is/was quite slow on the quant front, development/sales/marketing seems to be the name of the game at this point.

For what it's worth, I've heard of several entrepreneurs from Europe visiting the US to try and build relationships with chicken and pig in hopes of getting in early...

Baltazar · Post by **Baltazar** » Wed Oct 10, 2007 9:49 am

I also heard SG joint venture for energy trading (including co2 i believe) is growing a lot these days.

They may be intrested in some kind of collaboration

FDAXHunter · Post by **FDAXHunter** » Wed Oct 10, 2007 9:56 am

[b]mj:[/b] [i]can suggest some math problems[/i]

Problem 1: If the world did away with teaching math and there where no more math books printed and no more notebooks used by math students, what would be the total area of forest saved per year?

Problem 2: What would be the CO2 uptake of said saved forest per year?

Problem 3: What would the cumulative CO2 uptake be over 10 years?

Bachelier · Post by **Bachelier** » Wed Oct 10, 2007 10:56 am

Problem 4: Calculate the stopping time of the iterated Prisoner's Dilemma between lost marginal sales and psychological income/utility curve satisfaction point of publishing a book in electronic format to reduce carbon imprint calculated above. Show your state spaces.

But oddly, the tax and reporting treatment of carbon credits are probably more challenging than the quant applications on the trades. I loan to companies with negative and positive carbon credits, and how they value them when positive and pay for them when needed appears to be arbitrary and inconsistent.

nsande · Post by **nsande** » Wed Oct 10, 2007 1:45 pm

It's all a hoax anyway.

The most useful calculation would be showing the cost of a cap-and-trade system compered to the cost of adapting to possible (and not very catastrophic) climate change.

AndyM · Post by **AndyM** » Wed Oct 10, 2007 3:08 pm

[i]It's all a hoax anyway[/i]

This seems to be a particular hobbyhorse of yours, but since you know that you can't substantiate your view without drawing the forum into a tedious political debate, you prefer to just lob out an unsubstantiated and vague opinion, which may comply with forum guidelines, but isn't very constructive.

Better to avoid the topic altogether IMO.