Structural Change Features and Influencing Factors of China’s Carbon Price

Liu, Jian; Hu, Xin; Yan, Lizhao

doi:10.1080/1540496x.2022.2156280

Cited by 5 publications

(2 citation statements)

References 48 publications

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“…These points of structural change are related to the economic situation. The mechanisms by which factors affect the price of China's carbon market change significantly before and after points of structural change [34,35]. Based on the ICSS algorithm, scientists detected structural breaks in the time series of carbon futures and put forward several hypotheses about the occurrence of breakpoints associated with a period of high carbon emissions or, with the 2008 mortgage crisis and the 2011 European debt crisis [36].…”

Section: Theoretical Foundations and Literature Reviewmentioning

confidence: 99%

Carbon Pricing in Current Global Institutional Changes

et al. 2023

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Global institutional changes (GICs), having influenced energy prices, led to a steady upward trend in carbon prices on the EU ETS. The aim of the article is to assess the changes in the relationship between carbon prices and energy prices under GICs. The Bai–Perron tests for structural breaks identified two dates as the breakpoint, 21 April 2016 and 21 September 2020. We test the hypothesis that powerful external factors (GIC) are changing the trend pattern of the carbon price time series. New pricing rules of the carbon price are being formed after the breakpoint. We use daily observations from 4 January 2010 to 1 September 2022. We use GARCH models with multiple stationary time series to discover a relationship energy price with the carbon price before and after the break points. We found that three models for two breakpoints better describe the relationship between carbon prices and energy prices than two models for one breakpoint, much less one model for the entire period. We find that the carbon price depends on energy prices, especially on the price of oil, in a statistically significant way, but the gas price is not statistically significant after 21 September 2020.

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Section: Theoretical Foundations and Literature Reviewmentioning

confidence: 99%

Carbon Pricing in Current Global Institutional Changes

et al. 2023

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“…Compared with the carbon markets in the US and Europe, the problems of convergent trading decisions and limited inter-firm liquidity are more pronounced in the pilot carbon markets except Hubei, which is one of the reasons why the CAP volatility in the carbon market departs from the normal level [28]. In terms of external influences factors, the news, government policies, the development of clean energy, stock market, electricity prices and the COVID-19 outbreak have been shown to have a significant impact on CAP trend [29][30][31] and it is clear that the role of these influencing factors is heterogeneous in different carbon markets [32][33][34]. Looking further at individual carbon markets, the researches on the Shenzhen and Hubei carbon markets is more abundant.…”

Section: Introductionmentioning

confidence: 99%

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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Carbon trading price and carbon performance of high energy‐intensive enterprises

Feng,

Lei

2024

Manage Decis Econ

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Separating the relationship between the environment and the economy and simply discussing the impact of carbon pricing on corporate carbon emissions may lead to the “green paradox”. That is, environmental policies aimed at reducing emissions would result in an increase in carbon emissions. To remedy this shortcoming, scholars have proposed the concept of “carbon performance”. With the growing interest in carbon performance, this study investigates the relationship between carbon trading price and enterprise carbon performance, which is still unknown in the existing literature. Based on the panel data of high energy‐intensive (HEIs) listed enterprises in China from 2013 to 2021, we find a positive and significant relationship between carbon trading price and carbon performance. In the components, we find that the carbon performance enhancement effect is stronger for high industry competition, state‐owned enterprises and large‐scale enterprises. In addition, to explore the impact of external influences on the relationship, we select financing constraints and environmental uncertainty as moderating variables. This research provides new insights to enhance the carbon performance of HEIs, as well as experiences and lessons for the construction of China's carbon emissions trading market.

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Structural Change Features and Influencing Factors of China’s Carbon Price

Cited by 5 publications

References 48 publications

Carbon Pricing in Current Global Institutional Changes

Carbon Pricing in Current Global Institutional Changes

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

Carbon trading price and carbon performance of high energy‐intensive enterprises

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