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Lead-lag relations between the Chinese carbon and energy markets: Evidence from extreme climate shocks

Author

Listed:
  • Li, Jingbo
  • Chen, Zhang-Hangjian
  • Gao, Xiang
  • Huisman, Ronald
  • Koedijk, Kees

Abstract

We examine how lead-lag relationships between China's carbon market and energy markets change during extreme climate events. We show that extreme climate events strengthen the lead-lag relationship between markets, especially during extreme cold and heat periods during which energy demand spikes.

Suggested Citation

  • Li, Jingbo & Chen, Zhang-Hangjian & Gao, Xiang & Huisman, Ronald & Koedijk, Kees, 2024. "Lead-lag relations between the Chinese carbon and energy markets: Evidence from extreme climate shocks," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013461
    DOI: 10.1016/j.frl.2024.106317
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    References listed on IDEAS

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