Research On The Dynamic Relationship Among China’s Carbon Market,Energy Market And Stock Market

With the acceleration of industrialization,human living environment has been severely damaged.In order to alleviate the problem of climate deterioration,a financial system with carbon market trading as its core emerged at the historic moment.Compared with the mature EU carbon emissions trading system,China’s carbon market has developed late,but with the vigorous promotion of relevant policies,certain results have been achieved.The research on China’s carbon market is not only to accelerate the realization of China’s energy saving and emission reduction goals,but also has a close relationship with China’s carbon market construction and the development of green finance.The thesis selects energy and stock markets as representatives,and studies their dynamic correlation with China’s pilot carbon markets and conducts comparative analysis.The paper combs the pilot trading situation,trading mechanism and relevant literature of each carbon market in China.First,the Guangdong carbon market is selected as the representative of China’s carbon market,and the influencing factors are analyzed and studied with the energy and stock markets,and then Hubei,Guangdong,Shenzhen,and Beijing are selected.The five pilots in Shanghai and the energy,stock market and DCC-GARCH model analysis and research between the pilots.As China’s natural gas market is not perfect,coal,oil and power markets are selected in the energy market,and the Shanghai Composite Index and the Shanghai Industrial Index are selected in the stock market to determine the degree of financialization.Research shows that the long-term sustainability of China’s carbon market and energy market volatility is high,the long-term sustainability with the stock market is low,and the short-term adjustment ability with the energy and stock markets is weak.However,compared with the stock market,the dynamic correlation between China’s carbon market and energy market is slightly stronger.In addition,there are regional differences in the links between the pilot carbon markets and other markets:(1)The Shenzhen pilot carbon market has the strongest correlation with the energy market and weaker links with other pilot carbon markets.It can be seen that the operation of the Shenzhen carbon market is relatively independent.Although it has a strong linkage with the energy market and plays a greater role in energy conservation and emission reduction,the complete separation from other pilots is very detrimental to the construction of the national carbon market.(2)The Shanghai pilot carbon market has the highest degree of financialization.The Shanghai market has the strongest correlation with the stock market,and its short-term adjustment and long-term sustainability are both strong.(3)The Hubei and Guangdong pilot carbon markets have the strongest correlation.The launch of the national carbon emissions trading system has strengthened their links and optimized their competition mechanism.(4)The dynamic correlation coefficients of the Shanghai and Beijing carbon markets are the highest,and the time-varying characteristics are obvious.