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Factors Affecting Carbon Emission Trading Price: Evidence from China

Author

Listed:
  • Yingkai Yin
  • Zhihui Jiang
  • Yazhou Liu
  • Zheng Yu

Abstract

Since the Chinese national carbon trading market was launched in 2017, the carbon trading price has become an important research topic. This study constructs the ‘China carbon trading price index’, and then a SVAR model with the China carbon trading price index, the EU carbon trading price index, an industrial index, the China Securities Index energy index (CSI), an air quality index (AQI) and the HS300 to study carbon trading prices in China. The result shows that the EU carbon trading price and AQI have a direct effect on China carbon trading price. Meanwhile, the CSI energy index, industrial index and HS300 have an indirect effect on the carbon trading price, and the effect is slightly positive. In addition, the volatility of China’s carbon trading price is mainly internally driven, while the volatility of the other economic variables examined is mostly driven by the EU carbon trading price index and the industrial index.

Suggested Citation

  • Yingkai Yin & Zhihui Jiang & Yazhou Liu & Zheng Yu, 2019. "Factors Affecting Carbon Emission Trading Price: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(15), pages 3433-3451, December.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:15:p:3433-3451
    DOI: 10.1080/1540496X.2019.1663166
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    Citations

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    Cited by:

    1. Longtian Zhang & Zheng Pan, 2024. "The Impact of the Carbon Emission Trading Shadow Price on the Green Total Factor Productivity of the Power Industry in China," Sustainability, MDPI, vol. 16(10), pages 1-21, May.
    2. Zhang, Lihui & Li, Songrui & Nie, Qingyun & Hu, Yitang, 2022. "A two-stage benefit optimization and multi-participant benefit-sharing strategy for hybrid renewable energy systems in rural areas under carbon trading," Renewable Energy, Elsevier, vol. 189(C), pages 744-761.
    3. Peishu Chen & Yu He & Kai Yue & Guochang Fang, 2023. "Can Carbon Trading Promote Low-Carbon Transformation of High Energy Consumption Enterprises?—The Case of China," Energies, MDPI, vol. 16(8), pages 1-18, April.
    4. Zhai, Haizhen & Jin, Guangrong & Liu, Lihua & Su, Zheng & Zeng, Yuchao & Liu, Jie & Li, Guangyu & Feng, Chuangji & Wu, Nengyou, 2023. "Parametric study of the geothermal exploitation performance from a HDR reservoir through multilateral horizontal wells: The Qiabuqia geothermal area, Gonghe Basin," Energy, Elsevier, vol. 275(C).
    5. Tianlin Zhai & Linke Wu & Yuanmeng Chen & Mian Faisal Nazir & Mingyuan Chang & Yuanbo Ma & Enxiang Cai & Guanyu Ding & Chenchen Zhao & Ling Li & Longyang Huang, 2022. "Ecological Compensation in the Context of Carbon Neutrality: A Case Involving Service Production-Transmission and Distribution-Service Consumption," Land, MDPI, vol. 11(12), pages 1-18, December.
    6. Wang, Kai-Hua & Liu, Lu & Zhong, Yifan & Lobonţ, Oana-Ramona, 2022. "Economic policy uncertainty and carbon emission trading market: A China's perspective," Energy Economics, Elsevier, vol. 115(C).
    7. Xu, Yingying, 2021. "Risk spillover from energy market uncertainties to the Chinese carbon market," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    8. Hong Qiu & Genhua Hu & Yuhong Yang & Jeffrey Zhang & Ting Zhang, 2020. "Modeling the Risk of Extreme Value Dependence in Chinese Regional Carbon Emission Markets," Sustainability, MDPI, vol. 12(19), pages 1-15, September.
    9. Mosab I. Tabash & Mujeeb Saif Mohsen Al-Absy & Azzam Hannoon, 2024. "Modeling the Nexus between European Carbon Emission Trading and Financial Market Returns: Practical Implications for Carbon Risk Reduction and Hedging," JRFM, MDPI, vol. 17(4), pages 1-29, April.
    10. Chen, Zhang-HangJian & Zhao, Shou-Yu & Song, Huai-Bing & Yang, Ming-Yuan & Li, Sai-Ping, 2024. "Dynamic volatility spillover relationships between the Chinese carbon and international energy markets from extreme climate shocks," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 626-645.

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