Study On The Co-Movement Characteristics Of Carbon And Energy Market Based On Modes Network Model

At present,global warming caused by carbon emissions is a major challenge facing the world.Excessive carbon emissions are closely related to energy production and utilization.Carbon emission trading is the lowest cost and effective method of energy conservation and emission reduction.China's carbon market includes pilot carbon market and national unified carbon market.The national unified carbon market was officially implemented on February 1,2021,but trading has not yet started.Since the pilot carbon market was built in 2011,it has a profound impact on improving fossil energy efficiency and reducing carbon dioxide emissions.Based on the modes network model,the paper studies the price fluctuation laws and evolution characteristics between carbon market and energy market.Guided by the fluctuation of carbon market and the complex co-movement relationship between carbon market and energy market,the paper defines the fluctuation modes,constructs the modes network,and analyzes the network and topological characteristics.The details are as follows:On the one hand,the paper uses the volatility modes network to study the volatility characteristics of China's carbon market.Firstly,the virtual national carbon market price sequence is constructed based on the pilot carbon markets price sequences.Secondly,the price time series is transformed into fluctuation symbol series,and the fluctuation mode is defined with the help of sliding window.Taking the fluctuation mode as the node and the calendar order relationship between modes as the edge,the fluctuation modes network of each carbon market is constructed.Finally,through the analysis of network and topological characteristics,it is found that although the price fluctuation characteristics of each pilot is different,the short-term prices of several pilot often remain unchanged.Furthermore,the price fluctuation of China's unified carbon market is relatively good from the performance of the virtual national carbon market.On the other hand,the paper use co-movement modes network to study the comovement evolution characteristics between markets.Firstly,the price time series of the two markets are coupled with a price co-movement symbol series.Secondly,with the help of sliding window,the co-movement mode is defined.The calendar order relationship between modes is regarded as the edge to construct the co-movement mode network.Finally,the network structure,topology characteristics and the influencing factors of comovement are analyzed.The results show that the carbon market and energy market has mainly positive co-movement characteristics and vulnerable to seasonal changes;the co-movement characteristics are not significant between Hubei and Shanghai lead pilots carbon markets.However,with the passage of time,the pilot markets have improved the phenomenon that the carbon price remains unchanged in short-term.