Are there spillovers among China's pilots for carbon emission allowances trading?

Guo, Li-Yang; Feng, Chao

doi:10.1016/j.eneco.2021.105574

Cited by 68 publications

(21 citation statements)

References 63 publications

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“…Based on the above discussion, we cannot take the new products coming to market every year as the main product to represent the true state of the transaction due to the fact that it may not necessarily be the most active. Hence, following the criteria proposed by Guo and Feng ( 2021 ), we divide the sample time span into eight parts according to the time when the new product is launched, and select the product with the largest average daily volume every year as the more concerned and preferred product in the market, connecting their prices into a time series in chronological order as a representative of the Shenzhen market, as shown in Table 1 . It is worth noting that from July 2019 to December 2020, this paper still takes 1 year as a sample span period and chooses June 30, 2020, as the time dividing point.…”

Section: Methodology and Datamentioning

confidence: 99%

“…Several scholars have studied the spillover effect between carbon markets from the perspective of term structure (Baruník and Křehlík, 2018 ; Toyoshima and Hamori 2018 ; Ferrer et al 2018 ; Wang and Wang 2019 ; Lovcha and Perez-Laborda 2020 ). For example, Guo and Feng ( 2021 ) used a generalized forecast error variance decomposition as well as a spectral decomposition in the VAR process to decompose the spillovers into short-term, medium-term, and long-term effects, for researching the return and volatility spillover among the carbon emission trading market in China.…”

Section: Literature Reviewmentioning

confidence: 99%

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Time-varying spillovers among pilot carbon emission trading markets in China

Xiao

Sun

et al. 2022

Environ Sci Pollut Res

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Clarifying the time-varying spillovers among pilot carbon emission permit trading markets in China is an important foundation for building the national carbon emission trading market. We calculate the dynamic spillover of carbon price return among the pilot carbon emission permit trading markets in China with the time-varying connectedness approach. The dataset is constructed from transaction data from seven pilot carbon markets in China during the period of June 23, 2014, to December 31, 2020. The quantitative analysis suggests that (i) Beijing and Chongqing carbon emission trading markets are the main spillover markets of carbon price returns, with strong pricing power, while the Guangdong and Tianjin markets are the main receivers of the price return spillover in other pilot carbon emission trading markets. (ii) The spillover effect among China’s carbon markets has a strong policy orientation. The improvement and development of the carbon market driven by macroeconomic regulation and control policies can effectively improve the spillover ability of the carbon market, and the market trading activity, namely the volatility of the carbon price return rate, can amplify the spillover ability of the carbon market in the short term. (iii) There exist three types of price return spillover among China’s pilot carbon emission trading markets, including central divergence, one-way chain transmission, and circular spillover. Along with the improvement of market operation efficiency, the central divergent type of spillover shifts to the pattern of circular spillover. It is necessary for the government to improve market efficiency and ensure the coordinated development of China’s pilot carbon emission trading market and national carbon emission trading market. Supplementary Information The online version contains supplementary material available at 10.1007/s11356-022-19914-4.

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Section: Methodology and Datamentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Time-varying spillovers among pilot carbon emission trading markets in China

Xiao

Sun

et al. 2022

Environ Sci Pollut Res

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“…To this end, seven carbon emission trading pilots-represented by Beijing, Shanghai, and Tianjin-have been formed. The stable operation of China's carbon-emission-trading pilots provides countries around the world with the experience and reference material required for carbon emission governance [31]. Although the carbon emission rights trading pilots have achieved remarkable results, these programs are still in their early stages in terms of market maturity, price mechanisms, trading system improvement, and legal protections [32].…”

Section: The Marketization Of Energy Use Rights and Carbon Emission R...mentioning

confidence: 99%

Carbon Emission Efficiency Network: Evolutionary Game and Sensitivity Analysis between Differentiated Efficiency Groups and Local Governments

Zhang¹,

Tai

Cheng

et al. 2022

Sustainability

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With its proposal of the “double carbon” (peak carbon dioxide emissions and carbon neutralization) goal, China has entered a new stage in creating an ecological civilization and achieving sustainable development. Based on the formation and evolution mechanism of the carbon emission efficiency network, in this study, a trilateral evolutionary game model—including efficiency groups (high- and low-efficiency groups) and local governments—was constructed, in an attempt to discuss the conditions needed for different players and trilateral interconnected systems to implement balanced and stable strategies. Furthermore, the sensitivity of the participants’ evolutionary trajectories toward factors such as the initial strategy ratio, transition cost, and network capital were tested via a system simulation. The main conclusions were as follows: (1) Efficiency groups form a virtuous circle when the initial proportion of the participants’ strategies reaches a certain threshold, and converge into a stable “win–win” state. Under these circumstances, high-efficiency groups tend to give full play to their efficiency advantages in terms of carbon emission reduction and green development, while low-efficiency groups tend to choose green transformation and accept the spillover effect from high-efficiency groups. (2) When efficiency groups achieve a “win–win” state or form good self-management, local governments move from active supervision to a passive supervision strategy in order to reduce supervision costs. (3) While different initial strategy proportions do not affect the stable convergence point of the evolutionary system, they have a differentiated impact on the convergence speed of the players. Under the condition of a low initial strategy ratio, transformation costs can reduce the green transformation enthusiasm of inefficient groups, while network capital can enhance the green transformation willingness of inefficient groups.

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“…According to the Chinese government’s work report for 2021, the government will implement the expected GHG emission reduction targets for 2030 during the 14th Five-Year Plan period, achieving an 18% and 13.5% reduction in CO 2 emissions and energy consumption per unit of GDP, respectively, and accelerating the construction of a national carbon emissions trading market [ 5 ]. The carbon emissions trading market will gradually become an essential means of coping with climate change and preventing environmental pollution in China [ 10 ]. Some questions need to be verified, whether ETS has a significant synergistic emission reduction effect, and what mechanism is used by ETS to play its synergistic emission reduction role?…”

Section: Introductionmentioning

confidence: 99%

Can China’s Carbon Emissions Trading System Achieve the Synergistic Effect of Carbon Reduction and Pollution Control?

Chen

Wang

Shi

2022

IJERPH

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Achieving synergistic governance of air pollution treatment and greenhouse gas emission reduction is the way for the Chinese government to achieve green transformational development. Against this background, this paper takes the implementation of the carbon emissions trading system (ETS) as the breakthrough point, using the time-varying difference-in-differences (DID) model to explore the synergistic emission reduction effect of ETS on air pollution and carbon emissions and its mechanism. The results indicate that the implementation of ETS not only significantly reduces CO2 emissions but also synergistically achieves the reduction of air pollutants, and the synergistic emission reduction effect is mainly achieved through the synergistic reduction of SO2. Moreover, the emission reduction effect of ETS has economic and regional heterogeneity. On the one hand, the ETS has a more prominent carbon reduction effect in less developed provinces and cities and has a significant synergistic emission reduction effect on SO2 and PM2.5; on the other hand, the carbon emission reduction effect of ETS is more potent in Beijing, Hubei, and Shanghai, followed by Tianjin and Chongqing, and the weakest in Guangdong. In addition, through the analysis of the mediating effect, this paper finds that reducing energy consumption, optimizing the energy structure, and improving energy efficiency are effective ways for ETS to achieve synergistic emission reduction. This study provides valuable policy enlightenment for promoting the synergistic governance of pollution and carbon reduction.

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Are there spillovers among China's pilots for carbon emission allowances trading?

Cited by 68 publications

References 63 publications

Time-varying spillovers among pilot carbon emission trading markets in China

Time-varying spillovers among pilot carbon emission trading markets in China

Carbon Emission Efficiency Network: Evolutionary Game and Sensitivity Analysis between Differentiated Efficiency Groups and Local Governments

Can China’s Carbon Emissions Trading System Achieve the Synergistic Effect of Carbon Reduction and Pollution Control?

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