Background: Global carbon stocks in forest biomass are decreasing by 1.1 Gt of carbon annually, owing to continued deforestation and forest degradation. Deforestation emissions are partly offset by forest expansion and increases in growing stock primarily in the extra-tropical north. Innovative...

This paper proposes two dimension-reduction and forecasting quantile methods (i.e., the quantile group lasso and the quantile group SCAD models) to predict carbon futures returns and investigate the predictability of a comprehensive group of factors including market fundamental variables and...