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Network herding of energy funds in the post-Carbon-Peak Policy era: Does it benefit profitability and stability?

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  • Lu, Shuai
  • Li, Shouwei
  • Zhou, Wei
  • Yang, Wenke

Abstract

This paper detects the Carbon-Peak Policy effect on energy funds' network herding measured by a mixed network centrality and the herding effect on profitability and stability using a sample of 231 funds in China between 2008 and 2019. By examining the dynamic changes of the network topological structure and module characteristics, we find a significant presence of the post-CPP network herding in the energy funds. Our results indicate a positive post-CPP network herding effect on the energy funds' profitability and risk resistance in the short term. However, the positive post-CPP network herding effect reverses in the detection of the long-run stability. In contrast, it triggers larger systemic risks. Moreover, the network herding effect appears to exhibit merely in small-size funds.

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  • Lu, Shuai & Li, Shouwei & Zhou, Wei & Yang, Wenke, 2022. "Network herding of energy funds in the post-Carbon-Peak Policy era: Does it benefit profitability and stability?," Energy Economics, Elsevier, vol. 109(C).
    • Handle: RePEc:eee:eneeco:v:109:y:2022:i:c:s0140988322001256
    DOI: 10.1016/j.eneco.2022.105948
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