COVID-19, recovery policies and the resilience of EU ETS

Hong, Dong; Tan, Xiujie; Cheng, Shujia; Liu, Yishuang

doi:10.1007/s10644-021-09372-2

Cited by 8 publications

(4 citation statements)

References 84 publications

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“…To enhance the security and efficiency of ETS, an innovative approach called Blockchain-enabled Distributed ETS (BD-ETS) has been proposed. This model transforms the conventional centralized trading mode into a distributed system based on smart contracts, potentially enhancing the overall effectiveness of emissions trading (Dong et al, 2022). Emissions trading systems exhibit distinctive characteristics, including allowance allocation, the possibility of market linkage, and price volatility, necessitating a comprehensive understanding of the behaviors exhibited by producers and consumers within these systems (Zheng et al, 2021).…”

Section: The Carbon Sink and Emission Trading Systemmentioning

confidence: 99%

Decarbonisation: A Case Study of Malaysia

Gunawan,

Lee,

Putri

et al. 2023

Foresight and STI Governance

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The study aims to assess the decarbonization efforts of corporations in Malaysia in relation to the country’s national net-zero emission targets. A qualitative approach was adopted, employing two focus group discussions (FGDs) with a total of 18 participants. The FGD questions were developed based on the participants’ expertise and experiences. Thematic analysis was utilized to analyze the collected data. This study sheds light on key decarbonization practices in Malaysian companies, which place greater emphasis on environmental regulatory compliance and cost-saving measures. However, investment in decarbonization remains a small part of overall capital investment and receives little attention from corporate leadership. The importance of addressing the concerns raised by this study is key to realizing Malaysia’s Determined National Commitment (NDC) to achieve net zero emissions by 2050. This study contributes to the existing literature by providing insights into the decarbonization efforts of corporations in Malaysia, specifically in the context of the country’s national net-zero emission targets. The research utilizes a qualitative approach and applies thematic analysis to explore the perceptions and motivations driving decarbonization initiatives. The study also highlights the role of government pressures and the need to address critical business concerns for successful decarbonization.

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Section: The Carbon Sink and Emission Trading Systemmentioning

confidence: 99%

Decarbonisation: A Case Study of Malaysia

Gunawan,

Lee,

Putri

et al. 2023

Foresight and STI Governance

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“…However, a rapid recovery in the postpandemic period, particularly driven by excess liquidity, carbon-intensive sectors and technologies, precipitated a rebound and even a surge in CO2 emissions. This also paved the way for a new chapter of financial instability with high inflation and consequently counter-cyclical monetary policy (Ouliaris and Rochon, 2021;Dong et al, 2022). These recurring cycles of global financial instability, marked by extreme variations in liquidity in the financial sector, the implementation of countercyclical monetary policies, dramatic fluctuations in inflation, and peaks in energy demand and CO2 emissions have highlighted the complex issue of financing the green transition with regard to global climate risk (He et al, 2021;Gir on and Ivanova, 2023).…”

Section: Introductionmentioning

confidence: 99%

“…However, a rapid recovery in the post-pandemic period, particularly driven by excess liquidity, carbon-intensive sectors and technologies, precipitated a rebound and even a surge in CO2 emissions. This also paved the way for a new chapter of financial instability with high inflation and consequently counter-cyclical monetary policy (Ouliaris and Rochon, 2021; Dong et al. , 2022).…”

Section: Introductionmentioning

confidence: 99%

The dance of dependence: a macro-perspective on financial instability and its complex influence on the Euro-American green markets

Gaies

Chaâbane

2023

JES

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PurposeThis study adopts a new macro-perspective to explore the complex and dynamic links between financial instability and the Euro-American green equity market. Its primary focus and novelty is to shed light on the non-linear and asymmetric characteristics of dependence, causality, and contagion within various time and frequency domains. Specifically, the authors scrutinize how financial instability in the U.S. and EU interacts with their respective green stock markets, while also examining the cross-impact on each other's green equity markets. The analysis is carried out over short-, medium- and long-term horizons and under different market conditions, ranging from bearish and normal to bullish.Design/methodology/approachThis study breaks new ground by employing a model-free and non-parametric approach to examine the relationship between the instability of the global financial system and the green equity market performance in the U.S. and EU. This study's methodology offers new insights into the time- and frequency-varying relationship, using wavelet coherence supplemented with quantile causality and quantile-on-quantile regression analyses. This advanced approach unveils non-linear and asymmetric causal links and characterizes their signs, effectively distinguishing between bearish, normal, and bullish market conditions, as well as short-, medium- and long-term horizons.FindingsThis study's findings reveal that financial instability has a strong negative impact on the green stock market over the medium to long term, in bullish market conditions and in times of economic and extra-economic turbulence. This implies that green stocks cannot be an effective hedge against systemic financial risk during periods of turbulence and euphoria. Moreover, the authors demonstrate that U.S. financial instability not only affects the U.S. green equity market, but also has significant spillover effects on the EU market and vice versa, indicating the existence of a Euro-American contagion mechanism. Interestingly, this study's results also reveal a positive correlation between financial instability and green equity market performance under normal market conditions, suggesting a possible feedback loop effect.Originality/valueThis study represents pioneering work in exploring the non-linear and asymmetric connections between financial instability and the Euro-American stock markets. Notably, it discerns how these interactions vary over the short, medium, and long term and under different market conditions, including bearish, normal, and bullish states. Understanding these characteristics is instrumental in shaping effective policies to achieve the Sustainable Development Goals (SDGs), including access to clean, affordable energy (SDG 7), and to preserve the stability of the international financial system.

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“…The international COVID-19 outbreak has not only threatened human lives but has also affected the socio-economy and environment on which humanity depends ( Klemeš et al, 2020 , Le Quéré et al, 2020 ). At the beginning of the COVID-19 pandemic, to control the spread of the virus, many countries adopted mandatory restrictions, such as social distancing, closures, quarantines and restrictions on production activities, which severely damaged global socio-economic operations ( Dong et al, 2022 , Nicola et al, 2020 , Xu and Wei, 2021 ). These restrictions led to significant changes in energy consumption and CO 2 emissions ( Shan et al, 2021 , Zhang et al, 2022a ).…”

Section: Introductionmentioning

confidence: 99%