Risk Assessment of Fluorochemical Companies under Carbon Trading
-- A Case Study of Juhua Corporation's Refrigerant
DOI:
https://doi.org/10.54097/eqk4dq90Keywords:
Carbon Market, Chemical Enterprises, Risk Assessment, Stress TestingAbstract
Under the "Dual Carbon" strategy, promoting the development of the carbon trading market has become a key component of the national energy and environmental strategy, with the chemical industry serving as the "pioneer" in the country's efforts to achieve carbon peaking and carbon neutrality. This paper explores this emerging trend using Juhua Corporation's refrigerant business as a case study. First, it examines the carbon trading mechanism, highlighting the promising prospects following the European Union’s inclusion of the chemical industry in the carbon market. Next, through an in-depth analysis of the company's refrigerant business and relevant policies, the paper conducts scenario-based stress testing from two perspectives: refrigerant technology evolution and the tightening of carbon trading policies. The analysis is primarily based on the KMV model to assess the investment risks for Juhua’s refrigerant industry in the future. Finally, the paper proposes practical recommendations based on the findings, offering significant insights for the transformation and development of fluorochemical companies within the context of the carbon trading market.
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