How do carbon trading price and carbon tax rate affect power project portfolio investment and carbon emission: An analysis based on uncertainty theory.

Responding to the social, economic, and environmental call to resolve current sustainability challenges, the concern about carbon dioxide emission reduction should be incorporated into the power investment decision process. Reflecting the low carbon emission requirement, this paper proposes a new optimization model for power project portfolio selection that simultaneously considers both of carbon emission trading scheme and carbon tax imposition. In this model, the initial investment outlay, the power sale price, the carbon trading price, and carbon tax rate are treated as uncertain variables considering the fast-changing environment and complex market situation.

A new uncertain enhanced index tracking model with higher-order moment of the downside.

Enhanced index tracking (EIT) problem is concerned with selecting a tracking portfolio to beat the benchmark on return while having the minimum tracking error. This paper addresses the EIT problem based on uncertainty theory where stock returns are treated as uncertain variables instead of random variables. Under the framework of uncertainty theory, the paper proposes a new uncertain EIT model where the higher-order moment of the downside is used as the tracking error measure, as higher-order moment makes the model more widely applicable and the downside risk is in line with investors' perception of risk.