The Study Of The Extreme Risk Spillover Effects Between Cet Market,Coal Market,and Stock Market Of New Energy Companies In China

In the "dual carbon" context,how to use the carbon market to achieve the emission of reduction targets is particularly important.Due to the close linkage between the carbon market and energy market,especially with the coal market,there may be some correlation and risk spillover effect between them.At the same time,our government is committed to developing new energy to optimize the energy consumption structure and reduce carbon emissions This behavior strengthens the linkage and risk spillover effect between the CET market,the coal market and the stock market of new energy companies.In addition,the "black swan" event has had a huge negative impact on the regional economy and the global economy.Extreme risk events can be transmitted across markets,causing huge losses.In order to reduce the impact of the “black swan” events.The extreme risk spillover between the CET market,the coal market and the stock market of new energy companies need to be measured timely and appropriately.Therefore,this paper uses two cuttingedge methods to study the extreme risk spillover effect between the three markets.Based on the real demand,this paper studies the extreme risk spillover effect among the CET market,the coal market and the stock market of new energy companies.Firstly,this paper analyses the risk spillover mechanism from three perspectives.Secondly,this paper analyses the current situation of the CET market,the coal market and the stock market of new energy companies.Thirdly,this paper introduces the theory of the VAR for Va R model and the QIRF model.Finally,based on the daily data of the Shenzhen CET subsidy price,the CNI new energy index（closing price）and the steam coal futures contract price.The risk spillover between the CET market,the coal market and the stock market of new energy companies is studied.The empirical results show that: there is a bidirectional extreme risk spillover between the coal market and the CET market;there is a bidirectional extreme risk spillover between the stock market of new energy companies and the CET market;there exists no unidirectional or bidirectional extreme risk spillover between the stock market of new energy companies and the coal market.Moreover,this paper points out that neither the coal market nor the stock market of new energy companies can rapidly absorb the extreme risk spillover from the CET market in a short time.According to the research results,this paper proposes the following four suggestions:Firstly,our government should make full use of the carbon market and reduce the proportion of coal on the energy consumption.Secondly,our government should make full use of the carbon market,to promote the development of the stock market of new energy companies.Thirdly,strengthen the linkage of China’s carbon pilots,improve the national carbon market trading mechanism;Fourthly,investors should allocate their investment portfolio reasonably,to improve the investment returns.