Risk effects among China′s carbon market, energy market, and high emission industries: Based on TVP-VAR-DY model
Journal Title: Energy Environmental Protection - Year 2024, Vol 38, Issue 3
Abstract
Under the consensus to address national climate change with low-carbon development, it is imperative to include other high-emission sectors in the national carbon market after the electricity market. This study investigates the risk spillover effects among the national carbon market, the power market, and the markets of high-emitting sectors from 2021 to 2023. The study optimizes the measurement of the dynamic spillover effect through the TVP-VAR-DY model. It is found that there are time-varying bidirectional asymmetric spillovers among the national carbon market, the energy market, and the markets of high-emission industries. The volatility spillovers between the markets are significantly enhanced, especially in the case of extreme risk events. Markets in high-emission sectors such as electricity are mainly affected by fluctuations in the carbon market, while risks in the new energy sector mainly affect the crude oil futures market. Major socio-economic events can make energy markets dominant in risk transmission in the short run, but over time, high-emission industries become risk exporters. Finally, we make recommendations for the construction of China′s carbon market, risk prevention in the energy market, and optimization of the energy structure of high-emission industries.
Authors and Affiliations
REN Zhengyu|The Institute for Sustainable Development, Macau University of Science and Technology, China, Hsing Hung Chen*|School of Business, Macau University of Science and Technology, China, TANG Jian*|The Institute for Sustainable Development, Macau University of Science and Technology, China, Baima Lake Laboratory, China, ZHANG Tianyan|Baima Lake Laboratory, China, YU Yang|Baima Lake Laboratory, China
Keywords
Related Articles
- EP ID EP737936
- DOI 10.20078/j.eep.20240404
- Views 62
- Downloads 0
Present situation and prospect of anaerobic digestion to transform organic wastes to bio-natural gas
Anaerobic digestion, which could transform organic wastes to biological natural gas, emerged from the discovery of biogas. It is drawing mounting attention due to its pollution treatment and energy recovery. The realizat...
Research of CO oxidation on supported oxide catalysts based on density functional theory
As one of the common gaseous pollutants, CO has seriously affected human healthy life and green economic development. Extensive research has shown that the supported metal oxide catalysts can perform efficient catalytic...
Main factors influencing the electro-methanation of CO_2 in microbial electrolytic cells and the role of electron intermediates
Greenhouse gas emissions from fossil fuel combustion have led to global ecological degradation and energy crisis. Therefore, it is urgent to explore new technologies for the conversion, reuse and clean energy production...
Experimental study on CO_2 dry biomethanation
As China has gradually become the largest energy consumer and carbon emitter, the efficient utilization of CO_2 has become an important means in realizing the "dual carbon" strategy. Microbial catalytic reduction of CO_2...
Preparation of Magnetic Molecularly Imprinted Polymers Based on Group Sensing Quenching and Their Adsorption Characteristics on Signaling Molecules
In the anaerobic membrane bioreactor (AnMBR), quorum sensing by microorganisms exacerbates biofouling, significantly hindering membrane performance and lifespan. Controlling the concentration of N-acyl homoserine lactone...