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The impacts of dual carbon goals on asset prices in China

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  • Huo, Xiaolin
  • Jiang, Dayan
  • Qiu, Zhigang
  • Yang, Sijie

Abstract

In this paper, we study the impacts of dual carbon goals on asset prices in China. Using the speech of President Jinping Xi on 22 September 2020 as an event in which the dual carbon goals are formally announced, we find that stocks with green concept have superior performance in the post-event window relative to non-green stocks. In particular, a portfolio that longs green stocks and shorts non-green stocks can generate an average monthly return above 3%. The official announcement of dual carbon goals not only attracts attention of investors, resulting in higher institutional ownership and trading volume for green stocks, but also improves fundamentals for green stocks in the post-event window.

Suggested Citation

  • Huo, Xiaolin & Jiang, Dayan & Qiu, Zhigang & Yang, Sijie, 2022. "The impacts of dual carbon goals on asset prices in China," Journal of Asian Economics, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:asieco:v:83:y:2022:i:c:s1049007822001026
    DOI: 10.1016/j.asieco.2022.101546
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    More about this item

    Keywords

    Dual carbon goals; Asset prices; China’s stock market;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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