Regional imbalances of market efficiency in China’s pilot emission trading schemes (ETS): A multifractal perspective

Chai, Shanglei; Yang, Xiaoli; Zhang, Zhen; Abedin, Mohammad Zoynul

doi:10.1016/j.ribaf.2022.101758

Cited by 21 publications

(4 citation statements)

References 65 publications

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“…The above results reflect that, in addition to considering returns, it may be more prudent for investors to choose carbon markets such as Hubei or Guangdong if they are risk-averse in their analysis of CAP volatility. Our findings are consistent with those obtained from the empirical mode decomposition (EMD)-based multifractal depolymerization fluctuation analysis (MFDFA) [51] and are reliable.…”

Section: Discussionsupporting

confidence: 89%

Research on Carbon Allowance Price Non-Linear Structure Characteristics and Regime Switching Mechanism in China's Carbon Market

Wei,

Chen

2023

Pol. J. Environ. Stud.

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Carbon allowance prices (CAP) directly reflect the overall movement of the carbon market, which is the core of the carbon market operation and an important perspective for studying the carbon market. Based on the threshold model and regime switching model, through studying the performance of CAP in China's carbon market, the paper has the following conclusions. First, CAP show significant non-linear structure and three operating intervals of high, medium, and low, with most of the time being active in the medium and low intervals. Second, there is a stabilization mechanism in the current operation of CAP, which can adequately regulate the trend of CAP fluctuations and eventually converge back to the normal state. Finally, it is found that moderate increases are the main form of CAP volatility in China's carbon market, but other possible states and the risk of abnormal CAP volatility due to state transformation still exist. Furthermore, for investors, China's carbon market may be an ideal place to make long-term investments and hedge risks in the future. This paper provides theoretical support for investors and regulators in the carbon market to make scientific decisions based on the carbon market.

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Section: Discussionsupporting

confidence: 89%

Research on Carbon Allowance Price Non-Linear Structure Characteristics and Regime Switching Mechanism in China's Carbon Market

Wei,

Chen

2023

Pol. J. Environ. Stud.

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“…Since the number of securities determines the upper limit of the completeness of a country's financial market, the completeness of a financial market is directly related to the number of securities in the market [7]. In addition, there are many strict assumptions in the perfect market model.…”

Section: Discussionmentioning

confidence: 99%

Market Efficiency in the UK Emerging Financial Markets

Zhou

2023

AEMPS

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The UK financial market system is huge, more clearly divided and more functional. Under the impact of the world financial innovation trend and the increasing competition in the international financial market, the UK financial market has made quite bold financial innovations. The internationalization trend of the UK's emerging financial market, capital market and London foreign exchange market are all strengthening. The efficiency of financial markets has a significant impact on the effective functioning of financial markets and thus on the efficiency of real economic operations. Market efficiency is influenced by a variety of factors. This paper examines market efficiency in detail from the perspectives of resource allocation theory, incomplete information theory, institutional economics theory and behavioral economics theory, and concludes that market efficiency is the result of a combination of factors such as resource allocation, and information, economic behavior. According to the efficient market hypothesis, investment decisions are largely determined by market efficiency. However, even the most developed financial markets in the world today are hardly guaranteed to conform to the perfect competition hypothesis. In summary, the study of market efficiency issues has far-reaching practical implications for the UK emerging financial markets in the transition period.

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“…Existing studies on the factors of CEP can be loosely categorized into three key categories: demographic dynamics, economic advancement, and technological advancements [11]. To begin, it is critical to recognize that population has a significant impact on the CEP The phenomenon, known as the population agglomeration effect, has the ability to increase factor productivity, hence contributing to the CEP [15]. Furthermore, academics generally agree that there is a favorable relationship between economic progress and the potential for improved CEP.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Does the Energy-Consumption Permit Trading Scheme Improve Carbon Emission Performance? Evidence from a Quasi-Natural Experiment in China

He,

Jiang

2024

Sustainability

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The Chinese government launched the Energy-Consumption Permit Trading Scheme (ECPT) in 2016 as a pilot policy initiative to achieve energy conservation and emissions reduction goals. To generate a quasi-natural experiment, this study used a difference-in-differences (DID) approach with panel data from 2006 to 2020 in China. The goal was to explore the impact of the ECPT policy on the carbon emission performance (CEP) as well as analyze the underlying influence processes. The findings indicate that applying the ECPT has a considerable positive influence on the CEP. In comparison to provinces that did not engage in the pilot program, those that did reported a 4.5% improvement in CEP. We can safely declare that the results remain consistent and trustworthy after undergoing a battery of rigorous tests to assess the robustness of our findings. The mechanism’s evaluation revealed that the ECPT has the potential to improve the CEP, mostly via changing energy consumption patterns and stimulating technological innovation. Furthermore, when we considered heterogeneity, we discovered that factors such as geographical location, the level of green financing development, and the level of environmental regulation may affect the ECPT policy effects.

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Regional imbalances of market efficiency in China’s pilot emission trading schemes (ETS): A multifractal perspective

Cited by 21 publications

References 65 publications

Research on Carbon Allowance Price Non-Linear Structure Characteristics and Regime Switching Mechanism in China's Carbon Market

Research on Carbon Allowance Price Non-Linear Structure Characteristics and Regime Switching Mechanism in China's Carbon Market

Market Efficiency in the UK Emerging Financial Markets

Does the Energy-Consumption Permit Trading Scheme Improve Carbon Emission Performance? Evidence from a Quasi-Natural Experiment in China

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