IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v333y2025ics0360544225029810.html
   My bibliography  Save this article

Does carbon news influence carbon prices?–Taking China's carbon market as an example

Author

Listed:
  • Sun, Tao
  • Zhang, Heng-Guo

Abstract

This paper extends the dynamic microstructure model of Ibrahim and Kalaitzoglou (2016) to study the news-driven price discovery in a single market. Based on this, we further expand the microstructure model of Hasbrouck (1995) to study a news-driven cointegration model between two markets. To analyze the impulse response of news among multiple markets, we further extend the spatial vector autoregressive model of Beenstock and Felsenstein (2007) to estimate the volatility spillover caused by news. The experimental results indicate that when homogenous or closely connected assets are traded in multiple markets, different transaction prices can be seen as sharing the same news-driven components, and there may be a cointegration relationship. In China's pilot carbon emission market phase, carbon news can increase the market transaction price and trading volume. In other stages, carbon news increases the transaction price but reduces the trading volume.

Suggested Citation

  • Sun, Tao & Zhang, Heng-Guo, 2025. "Does carbon news influence carbon prices?–Taking China's carbon market as an example," Energy, Elsevier, vol. 333(C).
    • Handle: RePEc:eee:energy:v:333:y:2025:i:c:s0360544225029810
    DOI: 10.1016/j.energy.2025.137339
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544225029810
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2025.137339?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

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    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:energy:v:333:y:2025:i:c:s0360544225029810. 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/energy .

    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.