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Policy uncertainty and carbon neutrality: Evidence from China

Author

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  • Zeng, Qing
  • Ma, Feng
  • Lu, Xinjie
  • Xu, Weiju

Abstract

This paper examines the effects of China's economic policy uncertainty (CEPU) index and climate policy uncertainty (CPU) index on the Wind carbon neutral concept (CNCI) index volatility. We find that both CEPU and CPU indices have significant effects on the CNCI volatility. In addition, when the market suffers more volatile risks, the CPU index has relatively better performance than the CEPU index for forecasting CNCI index volatility. This paper can provide new insights to realize China's goal of achieving peak emissions by 2030 and carbon neutrality by 2060.

Suggested Citation

  • Zeng, Qing & Ma, Feng & Lu, Xinjie & Xu, Weiju, 2022. "Policy uncertainty and carbon neutrality: Evidence from China," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000848
    DOI: 10.1016/j.frl.2022.102771
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