Dynamic Spillovers and Asymmetric Spillover Effect between the Carbon Emission Trading Market, Fossil Energy Market, and New Energy Stock Market in China

In 2020, China proposed the goal of achieving carbon emission peaks by 2030 and carbon neutrality by 2060. For China, whose energy consumption structure has long been dominated by fossil energy, carbon trading and new energy are crucial for the realization of the emission target. By establishing a connectedness network model, this paper studies the static and dynamic spillovers between the Hubei carbon trading market, new energy stock market, crude oil market, coal market, and natural gas market in China, and draws the following conclusions: (1) the static spillover index of the carbon–energy–stock system is 3.57% and the dynamic spillover index fluctuates between 7.67% and 22.62%, indicating that the spillover effect of the system is low; (2) for the whole system, whether from a static or dynamic perspective, the carbon market always plays the role of net information receiver, while new energy is the net information transmitter; (3) the new energy stock market and the coal market always act as net information transmitters to the carbon market; and (4) the spillover effect of the system is asymmetric, wherein the system is more sensitive to negative information about price returns, and this asymmetry is much greater when the system is active.

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Study of Chinese carbon emission trading market mechanism based on the game theory

Global NEST Journal ◽

10.30955/gnj.003942 ◽

2021 ◽

Keyword(s):

Carbon Emission ◽

Emission Trading ◽

Market Mechanism ◽

Third Party ◽

Game Model ◽

Carbon Trading ◽

Initial Allocation ◽

Regulatory Policies ◽

Trading Market ◽

Secondary Carbon

<p>In order to provide corresponding suggestions for the establishment and development of China's carbon trading market mechanism, the three-party game model of the competent government departments, carbon emission enterprises and third-party verification institution in the initial allocation of carbon emission rights and the rotation bargaining game model in the secondary carbon trading market are solved and analyzed in this paper. The results show that the competent government departments should improve the review efficiency effectively to reduce cost by outsourcing the review work to universities, research institutes and other scientific research units and increasing punishment for the collusion behavior between the carbon emission enterprises and third-party verification institution. At the same time, the competent government departments should adopt the regular regulatory policies to deal with collusion behavior and reduce the sampling proportion to cut cost of government review. The trading center should directly determine transaction price in combination with the forces of buyers and sellers, and make matchmaking trading directly by selecting the qualified buyers and sellers at the secondary carbon trading market in process of bilateral open bidding.</p>

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Impact and Acting Path of Carbon Emission Trading on Carbon Emission Intensity of Construction Land: Evidence from Pilot Areas in China

Sustainability ◽

10.3390/su12197843 ◽

2020 ◽

Vol 12 (19) ◽

pp. 7843

Author(s):

Lu Li ◽

Jie Dong ◽

Yan Song

Keyword(s):

Energy Consumption ◽

Carbon Emissions ◽

Emission Intensity ◽

Carbon Emission ◽

Industrial Structure ◽

Emission Trading ◽

Carbon Trading ◽

Construction Land ◽

Trading Market ◽

Carbon Emission Trading

Recently, the environmental and resource crisis caused by excessive energy consumption has aroused great concern worldwide. China is a major country of energy consumption and carbon emissions, and has attempted to build a carbon emission trading market to reduce carbon emissions. This practice helps to promote the carbon trading projects for both regional carbon emission reduction and sustainable development in the pilot areas, as well as having important theoretical and practical significance for the further improvement of carbon emission trading policies. In this study, we first used the difference-in-difference (DID) model to evaluate the impact of carbon emission trading on the carbon emission intensity of construction land (CEICL). The results showed that the carbon emission trading policy can significantly reduce CEICL in the pilot areas. Furthermore, we adopted the quantile regression model to explore the mechanism and acting path of carbon emission trading on CEICL. The results show that the increase in carbon trading volume (CTV) can effectively reduce the CEICL. However, a high carbon trading price (CTP) tends to reduce the suppressing effect of carbon emission trading on CEICL. Additionally, carbon emission trading also affects CEICL through the indirect acting paths of industrial structure and energy intensity. Finally, we propose to promote regional low-carbon development from the perspective of developing a carbon emission trading market nationwide, rationalizing the carbon quota and trading price mechanism, optimizing the regional industrial structure, and improving the energy consumption structure.

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Operational Decision Model with Carbon Cap Allocation and Carbon Trading Price

Journal of Open Innovation Technology Market and Complexity ◽

10.3390/joitmc5010011 ◽

2019 ◽

Vol 5 (1) ◽

pp. 11 ◽

Cited By ~ 2

Author(s):

Jinpyo Lee

Keyword(s):

Optimality Condition ◽

Carbon Emission ◽

Stackelberg Game ◽

Emission Trading ◽

Total Carbon ◽

Carbon Trading ◽

Cap And Trade ◽

Trading Market ◽

Production Decision ◽

Trade Market

This paper considers a carbon emission cap and trade market, where the carbon emission cap for each entity (either government or firm) is allocated first and then the carbon trading price is decided interdependently in the carbon trading market among the non-cooperative entities which make their production decision. We assume that there are n entities emitting carbon during the production process. After allocating the carbon (emission) cap for each participating entity in the carbon cap and trade market, each participant makes a production decision using the Newsvendor model given carbon trading price determined in the carbon trading market and trades some amount of its carbon emission, if its carbon emission is below or above its own carbon cap. Here, the carbon trading price depends on how carbon caps over the entities are allocated, since the carbon trading price is determined through the carbon (emission) trading market, which considers total amount of carbon emission being equal to total carbon caps over entities and some fraction of total carbon emission should be from each entity participating in the carbon cap and trade market. Thus, we can see the interdependency among the production decision, carbon cap and carbon trading price. We model this as a non-cooperative Stackelberg game in which carbon cap for each entity is allocated in the first stage and each entity’s production quantity is decided in the second stage considering the carbon trading price determined in the carbon trading market. First, we show the monotonic property of the carbon trading price and each entity’s production over the carbon cap allocation. In addition, we show that there exists an optimality condition for the carbon cap allocation. Using this optimality condition, we provide various results for carbon cap and trade market.

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The Impact and Influencing Path of the Pilot Carbon Emission Trading market——Evidence From China

Frontiers in Environmental Science ◽

10.3389/fenvs.2021.787655 ◽

2021 ◽

Vol 9 ◽

Author(s):

Wangzi Xu

Keyword(s):

Carbon Emissions ◽

Emission Reduction ◽

Carbon Emission ◽

Emission Trading ◽

Carbon Market ◽

Carbon Trading ◽

Carbon Emission Reduction ◽

The World ◽

Carbon Emission Trading ◽

The Impact

As the country with the largest CO2 emissions in the world, the Chinese government has put forward clear goals of hitting peak carbon emissions by 2030 and carbon neutralization by 2060. Thus, China started piloting carbon emission trading in 2013, and in July 2021 China opened national carbon trading, which is the largest carbon market in the world (China Launches World, 2021). Therefore, it is very important for China to study the role and mechanism of carbon trading at present. Based on the quasi-natural experiment of China’s carbon market pilot, this paper uses panel data of 30 provinces in mainland China from 2008 to 2019 to conduct an empirical study on carbon emission reduction and the economic effects in China’s pilot provinces through a Time-varying Differences-in-Differences method model. The results show that the implementation of a carbon trading policy can significantly inhibit carbon emissions and promote economic growth. At the same time, this paper further analyzes the emission reduction mechanism of the carbon emissions trading policy through the intermediary effect test and finds that the policy mainly realizes carbon emission reduction by changing the energy consumption structure, promoting low-carbon innovation, and upgrading the industrial structure. In addition, innovative research has found the impact of a carbon price signal and marketization on the emission reduction effect of the carbon market. Finally, targeted suggestions are put forward.

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Factors Affecting China's Carbon Trading Price—A Case Study Based on Tianjin Carbon Emissions Trading Market

10.21203/rs.3.rs-521711/v1 ◽

2021 ◽

Author(s):

Yuwei Du ◽

Songsheng Chen

Keyword(s):

Carbon Emissions ◽

Industrial Development ◽

Carbon Emission ◽

Price Index ◽

Stock Exchange ◽

Emission Trading ◽

Carbon Trading ◽

Coal Price ◽

Trading Market ◽

Carbon Emission Trading

Abstract Building a carbon emission trading market is an effective way to control carbon emissions. The carbon emission trading price is the key to the carbon trading market, and it will affect the carbon emission reduction behavior of enterprises. This study use the vector autoregression (VAR) model, the cointegration analysis, and the Granger causality test to analyze the influence of industrial development index (Shanghai Stock Exchange Industrial Index (000004.SH)), coal price index (National Coal Price Index), air quality index (AQI), and economic index (Purchasing Managers Index (PMI)) on the carbon emission trading price in Tianjin. Empirical research results based on data from January 2014 to December 2019 show that the Shanghai Stock Exchange Industrial Index and AQI are positively correlated with Tianjin carbon emission trading price, and the National Coal Price Index and PMI are negatively correlated with Tianjin carbon emission trading price. Finally, some suggestions are made to promote the rapid maturity of the national carbon emission trading market of China.

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