IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i5p1059-d1596869.html
   My bibliography  Save this article

The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU

Author

Listed:
  • Runhong Lin

    (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China)

  • Tongjuan Cai

    (Chongyang Institute for Financial Studies, Renmin University of China, Beijing 100872, China)

Abstract

We mainly focus on the degree of marketisation of China’s carbon emissions trading from two aspects. Firstly, based on the financial market theory, the different characteristics of the construction of the EU and China’s carbon emissions trading market are compared. Secondly, the VAR-MVGARCH-DCC model is used to empirically analyze the dynamic correlation between the carbon emissions trading market and the stock market. The results show that the marketisation degree of China’s carbon emissions trading still has much room for improvement compared with the EU, and the carbon emission market has a significant guiding effect on the stock market. Therefore, to improve the carbon emissions trading system, we should pay attention to the influence of financial factors on carbon emissions trading and the establishment of transmission channels from the carbon market to the stock market. It is recommended to learn from the experience of the European Union and to take key industries as a guide to create a modern carbon financial system with more Chinese characteristics.

Suggested Citation

  • Runhong Lin & Tongjuan Cai, 2025. "The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU," Energies, MDPI, vol. 18(5), pages 1-18, February.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:5:p:1059-:d:1596869
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/5/1059/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/18/5/1059/
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:18:y:2025:i:5:p:1059-:d:1596869. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.