The Relationship Between China’s Carbon Emission Trading Market And Clean Energy Stock Market

In recent years,while the economy has been booming,the emergence of extreme weather such as melting glaciers has made people aware of the consequences of excessive emissions of greenhouse gases such as carbon dioxide.With the signing of the United Nations Convention on Climate Change and the Kyoto Protocol,more and more countries are paying attention to climate issues,and carbon dioxide is the focus.Controlling carbon dioxide emissions has become the goal of joint efforts of all countries in the world.As the largest carbon emitter,China has actively participated in the international emission reduction ranks,established a carbon emission trading market,and hopes to use market-oriented means to control carbon emissions and achieve low-carbon green development.Clean energy has attracted the attention and attention of investors because of its important influence in carbon reduction.By exploring the relationship between China’s carbon emission trading market and clean energy stock market,this thesis analyzes the mechanism of interaction between the two markets,and provides some reference value for the future development of carbon market and clean energy stock market.Based on China’s seven carbon market and clean energy stock market,this thesis selects the trading prices from June 18,2013 to February 28,2019 for empirical analysis,aiming to explore the spillover effects between the clean energy stock market and China’s carbon emission market.First of all,comb the relevant literature and related theories,and analyze the current situation of China’s carbon emission market.Secondly,build a suitable empirical model.Then,analyze the spillover effects of China’s carbon emission trading market and clean energy stock market.Finally,the portfolio of carbon emissions and clean energy stocks is analyzed.The empirical results show :(1)there is a price spillover effect and a volatility spillover effect between the clean energy stock market and China’s carbon emission trading market,but the spillover effect is different in each carbon emission trading pilot.The main reason is that the regional level of economic development,the average daily trading volume of the market and the market activity differences.(2)The average carbon asset accounts for a smaller share of the portfolio of carbon emissions rights and clean energy stocks in the seven carbon emission trading pilots.Hedging clean energy equity risks requires more carbon assets to be realized.The results of empirical inquiry provide a reference for the development of China’s carbon emission trading market.First,increase the liquidity of China’s carbon emission trading market and increase the activity of market participants.Second,improve the trading mechanism of China’s carbon emission trading market,enrich the relevant products of the carbon market.Third,promote the unified development of China’s carbon emission trading market.Fourth,optimize the portfolio of financial products to reduce market risk.