Abstract

This study investigates the impact of the carbon-related factors (Returns and risks regarding to the international carbon market, the energy market, and global climate change) on the prices and risks of China's new energy markets under different market conditions. The empirical results reveal the price and risk of China's new energy markets are more influenced by carbon-related factors under extreme conditions than stable conditions. During the period of extreme market risk increase, the ability of China's new energy markets to withstand external risk shocks has significantly increased. Additionally, the linkages between China's new energy market and carbon-related factors are dynamic.

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