Research Article
Open access
Published on 30 May 2025
Download pdf
Chen,D.;Shi,C. (2025). Carbon Trading Price Prediction Research Based on HPSO-LSTM. Applied and Computational Engineering,163,7-14.
Export citation

Carbon Trading Price Prediction Research Based on HPSO-LSTM

Donglin Chen 1, Chen Shi *,2,
  • 1 Wuhan University of Technology, Wuhan City, Hubei Province, China
  • 2 Wuhan University of Technology, Wuhan City, Hubei Province, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2755-2721/2025.23502

Abstract

Accurate carbon price forecasting plays a key role in promoting emission reductions and advancing the low-carbon economy. Given the strong nonlinear nature of carbon prices and the subjective challenge in tuning hyperparameters for traditional LSTM networks, this study introduces a prediction framework combining a Hybrid Particle Swarm Optimization (HPSO) algorithm with an LSTM neural network. Using China’s national carbon market data, both univariate and multivariate time series predictions are conducted. Results demonstrate that the HPSO algorithm efficiently tunes LSTM hyperparameters, enhancing performance compared to multilayer perceptron (MLP) models. Moreover, incorporating multiple variables yields superior predictive outcomes over using historical prices alone.

Keywords

Carbon Price Prediction Model, LSTM Neural Network, Hybrid Particle Swarm Optimization (HPSO) Algorithm

[1]. Zhang, J. J., Wang, Z. X., & Lei, Y. W. (2020). The Enlightenment of the EU Carbon Market Experience to the Construction of China's Carbon Market. Price: Theory & Practice, (1), 32-36, 170.

[2]. Chen, Z. B., & Sun, Z. (2021). The Development Process of China's Emission Trading Scheme: From Pilots to a National Market. Environment and Sustainable Development, 46(2), 28-36.

[3]. Zhao, L. X., & Hu, C. (2016). Research on the Influencing Factors of China's Emission Trading Price: An Empirical Analysis Based on the Structural Equation Model. Price: Theory & Practice, (7), 101-104.

[4]. Chen, X., Liu, M., & Liu, Y. (2016). Driving Factors and Structural Breaks of Carbon Trading Prices: An Empirical Study Based on Seven Carbon Trading Pilots in China. On Economic Problems, (11), 29-35.

[5]. Li, W., & Lu, C. (2015). The Research on Setting a Unified Interval of Carbon Price Benchmark in the National Carbon Trading Market of China. Applied Energy, 155, 728-739.

[6]. Yao, Y. Q., Hong, R., & Liu, Q. Y. (2023). Research on Carbon Price Prediction Based on BP-LSTM Hybrid Neural Network. Environmental Science and Management, 48(9), 71-76.

Cite this article

Chen,D.;Shi,C. (2025). Carbon Trading Price Prediction Research Based on HPSO-LSTM. Applied and Computational Engineering,163,7-14.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 3rd International Conference on Software Engineering and Machine Learning

Conference website: https://2025.confseml.org/
ISBN:978-1-80590-159-4(Print) / 978-1-80590-160-0(Online)
Conference date: 2 July 2025
Editor:Marwan Omar
Series: Applied and Computational Engineering
Volume number: Vol.163
ISSN:2755-2721(Print) / 2755-273X(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).