IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v61y2025i2p354-369.html
   My bibliography  Save this article

The Impact of Climate Policy Risk on Carbon-Emission Heterogeneous Assets: Evidence from China

Author

Listed:
  • Jianfeng Li
  • Xiaoyang Yao
  • Guanglin Sun
  • Tongyu Lu
  • Wei Le

Abstract

This study investigates the impact of climate policy uncertainty (CPU) on the price, volatility, and dynamic correlation of heterogeneous carbon emission assets in China. Our empirical results reveal that high-carbon assets and the first group of low-carbon assets, including renewable energy, new energy, geothermal, wind power, and photovoltaic power, have significant climate-policy risk exposure. The impact of CPU on the price and volatility of the second group of low-carbon assets, which includes governance, responsibility, sustainability, hydropower, and low-carbon sectors, is either positive or insignificant. CPU can lead to a significant decrease in the correlation between high- and low-carbon assets, especially during periods of high CPU. Moreover, we identify several low-carbon assets with strong hedging performance against the risks of high-carbon assets.

Suggested Citation

  • Jianfeng Li & Xiaoyang Yao & Guanglin Sun & Tongyu Lu & Wei Le, 2025. "The Impact of Climate Policy Risk on Carbon-Emission Heterogeneous Assets: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 61(2), pages 354-369, January.
    • Handle: RePEc:mes:emfitr:v:61:y:2025:i:2:p:354-369
    DOI: 10.1080/1540496X.2024.2391327
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2024.2391327
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2024.2391327?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    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:mes:emfitr:v:61:y:2025:i:2:p:354-369. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    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.