Research On The Spillover Effect Of China’s Carbon Markets From The Perspective Of Collaborative Development

In July 2021,the national carbon emissions trading market launched officially,but the transactions were not active yet in the early establishment.The mechanism needs to be improved further,the construction of legal protection needs to be strengthened,and the construction of supervision system needs to be completed.To promote the coordinated development of China’s regional carbon market and the national carbon market,we take China’s regional carbon markets as the research object from the perspective of coordinated development.We explore the integration and development of regional carbon markets after the establishment of the national carbon emissions trading market,which means to provide more targeted policy suggestions on how to facilitate the transition of regional carbon market to the national carbon market and how to coordinate with the national carbon market.Firstly,under bibliometric analysis,we make a brief review of the literature under the theme of carbon market spillovers.The analysis of existing literature provides new ideas and perspectives.Secondly,it sorts out the current situation of coordinated development of China’s carbon market in terms of compliance,trading,and regulation construction.Then we expound the causes and mechanisms of spillover effects from the perspective of economic principles,which provides theoretical basis and practical basis for subsequent empirical testing of China’s regional carbon market volatility spillover effects.Finally,the VAR-GARCH-BEKK model is used for empirical analysis,and the social network analysis of the spillover effect results is carried out.Based on the models,we sort out the overall network and individual network characteristics and also the causes of spillover effects.After theoretical and empirical systematic analysis,it is shown that:（1）The impact and the degree of each carbon market is affected by its own is significantly higher than that of other markets.The impact degree of the average spillover effect is weak and the impact cycle is short.（2）Markets with more mature development and higher participation have stronger spillover effects on other markets;carbon markets with less stringent regulatory systems and more obvious price fluctuations are affected by spillover effects from other carbon markets.（3）There are no isolated nodes in the overall network of China’s carbon market volatility spillovers.The connection density is strong,but the spillover intensity between single nodes is low.The market effectiveness needs to be further strengthened,and the degree of integration needs to be further improved.（4）The spillover relationship of China’s carbon market is generated under the dual action of internal mechanism and external environment,and the ultimate focus is on information spillover and risk spillover.Carbon market’s price information is transmitted by financial institutions and various emission control entities to another regional carbon market,causing its price fluctuation risk.It is the main transmission channel for the spillover effect.Accelerating the construction of the carbon market needs to proceed steadily on the basis of summarizing the experience of the pilot carbon market,and give play to the demonstration role of the regional carbon market.In order to promote the coordinated development of the regional carbon market and the national carbon market,it is necessary to cultivate both internal and external.The carbon market trading mechanism needs to be improved within the market focusing on the optimization of quota allocation methods,the expansion of the scope of trading entities,and the enrichment and innovation of carbon trading products.To strengthen the coordinated supervision outside the market,it is urgently important to strengthen the information disclosure management and establish a sound risk supervision and early warning system.