IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v81y2024icp1227-1240.html
   My bibliography  Save this article

Risk spillover within the carbon-energy system – New evidence considering China's national carbon market

Author

Listed:
  • Tang, Chun
  • Yang, Guangyi
  • Liu, Xiaoxing

Abstract

The implementation of China's national carbon market trading policy forms a unique model of parallel national and pilot markets, and makes its risk spillover relationship with energy markets a new issue to be explored. The risk transmission network of China's carbon-energy system is constructed using the connectedness approach in this paper, which also investigates the size, structure, time-varying characteristics, and long- and short-term differences of risk contagion as well as the role of major events in causing risk spillovers. We find that, first, there exists a certain degree of risk contagion within the carbon-energy system that is affected by short-term risk spillovers and is most pronounced at the right-tailed extremes. Second, the national carbon market and coal market are the primary sources of risk contagion in the risk spillover network. The former holds a central place in the network and exhibits a strong interaction with mature carbon pilot markets. Third, fluctuations in the energy market and carbon policy events dominate the overall spillover changes, with the former significantly affecting the risk spillover from the energy market, while the latter drives the risk spillover from the national carbon market.

Suggested Citation

  • Tang, Chun & Yang, Guangyi & Liu, Xiaoxing, 2024. "Risk spillover within the carbon-energy system – New evidence considering China's national carbon market," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1227-1240.
    • Handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:1227-1240
    DOI: 10.1016/j.eap.2024.02.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592624000298
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2024.02.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:1227-1240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.