Effects of scenario-based carbon pricing policies on China's dual climate change mitigation goals: Does policy design matter?

Chai, Jian; Zhang, Xuejun; Zhang, Xiaokong; Wang, Yabo

doi:10.1016/j.jmse.2022.10.002

Cited by 7 publications

(3 citation statements)

References 35 publications

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“…In practice, effect of ETS depends on many political and economic issues. 56 , 61 Volatile carbon price weakens the effect of ETS because of high risk. Carbon derivatives help project resist abnormal loss or hold necessary profit under market fluctuation, acting as an additional policy tool of ETS to stimulate carbon capture investment.…”

Section: Resultsmentioning

confidence: 99%

Influence of carbon derivatives on carbon capture investments in coal-based power sector, a China perspective

Wang,

Wang

2023

iScience

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Section: Resultsmentioning

confidence: 99%

Influence of carbon derivatives on carbon capture investments in coal-based power sector, a China perspective

Wang,

Wang

2023

iScience

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“…Finally, we recommend that investors consider climate concerns when making decisions and managing risk. Because carbon pricing changes affect pilot firms, such as those in the coal and steel industries, a thorough understanding of these swings can assist businesses in altering their business plans to maximize earnings (Alberola et al, 2007; Chai et al, 2023).…”

Section: Discussionmentioning

confidence: 99%

Climate change attention and carbon futures return prediction

Gong

Guan

et al. 2023

Journal of Futures Markets

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This study explores the predictive effect of climate change attention on carbon futures returns. Using climate‐related Google Trends and news, we construct five dimensions of the public climate attention index and media climate attention index. After feature selection, we incorporate the optimized combination with lagged order into the machine learning model to predict EU Emission Allowance futures returns. Our empirical results show that the forecasting models with climate attention outperform the corresponding benchmark models, indicating that climate attention does provide predictive information for carbon futures returns. In addition, we carry out trading simulations to investigate the economic performance of the forecast results. It turns out that the market strategies based on the prediction models with climate attention can deliver more benefits than the counterpart market strategies. More specifically, the cumulative returns reach 140% during the out‐of‐sample period, much higher than 79% of the cumulative returns of the buy‐and‐hold strategy.

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“…In last four decades, the worldwide concern for climate change has significantly highlighted in various industries, strategies, and markets (Ullah and Asghar, 2023). For example, Carbon Pricing and Market Efficiency (Chai, Zhang, Zhang, and Wang, 2023), Green Investing and EMH (Yang, Mehdi, Hafeez, Kaium, and Salahodjaev, 2023), Climate-Related Disclosures and Transparency (Hsu and Schletz, 2023) and Technology and Innovation (Rej, Bandy Hossain, Islam, and Yeediballi, 2023).…”

Section: Introductionmentioning

confidence: 99%

Climate Change Effects and Stock Market Returns

Luqman,

Farag,

Khakwani

et al. 2024

RAMSS

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To capture climate change risk at the business level, use records of performance briefings from different enterprises. This examination discovers that chances of worst climate change, the negative impact of business environment risk on market stock returns. Study also conducts a broad assessment of the empirical and theoretical literature on the influence of climate change related risks on financial market. The main aim of this analysis is to enhance our knowledge of the estimation significances of climate change risk in financial markets. It is initiated by discussing the theoretical connections between market asset pricing and climate change related risks, and then propose a hypothesis of how climate change risk drivers convey costs to enterprises and cause stock returns variations. It studies the historical climate change related events, which indicate that both climate physical effects and transition dynamics can cause a stock return volatility. Finally, the results imply that disclosures of climate change related information can support the stock market in more efficiently as pricing climate risk.

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Effects of scenario-based carbon pricing policies on China's dual climate change mitigation goals: Does policy design matter?

Cited by 7 publications

References 35 publications

Influence of carbon derivatives on carbon capture investments in coal-based power sector, a China perspective

Influence of carbon derivatives on carbon capture investments in coal-based power sector, a China perspective

Climate change attention and carbon futures return prediction

Climate Change Effects and Stock Market Returns

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