Research On The Spillover Effect Between China’s Carbon Market And Energy Stock Market

With the development of the carbon market,carbon emission rights not only have commodity attributes,but also gradually become a financial instrument with financial attributes.Participants in the carbon market mainly include government,performing enterprises,non-performing enterprises,investment institutions,social organizations and individuals.Enterprises can not only fulfill the carbon contract in the carbon market,but also carry out investment and financing activities through the carbon market.When information is spread in various markets,the links between different markets become closer and closer.In the stock market,the energy stock market is closely related to the carbon market,in which the energy stock market is divided into traditional energy stock market and new energy stock market.When the three markets are closely related,the risk is likely to be transmitted from one market to other markets,which will eventually lead to the turmoil of the whole financial market,aggravate the instability of the financial market,and even lead to a systemic financial crisis.Studying the spillover effect of risks between financial markets is of great theoretical and practical significance for preventing cross-industry,cross-market and cross-border spread of risks.Therefore,the spillover effect between carbon market and energy stock market deserves further study.The paper first reviews the research trends of domestic and foreign scholars on the operating mechanism of the carbon market and the spillover effects between the carbon market and the stock market.Then,it analyzes why there are mean and volatility spillover effects between financial markets.From the perspectives of investor behavior,market effectiveness,corporate value,and government policies,it delves into the transmission path of spillover effects between the carbon market and the energy stock market.Then,it explores the pilot carbon market in China Conduct a detailed analysis and characteristic summary of the current development status of the national carbon market and energy stock market.Finally,use the carbon trading data and energy stock market data from the Wind database to conduct empirical research on the problem,quantifying the mean and volatility spillover effects of the carbon market and energy stock market.Empirical research has found that there is a mean spillover effect between the national carbon market,traditional energy stock market,and new energy stock market.The Guangdong carbon market,traditional energy stock market,and new energy stock market have reached the same conclusion.There is no volatility spillover effect between the national carbon market and the traditional energy stock market.There is volatility spillover effect between the national carbon market and the new energy stock market,and the spillover effect of the new energy stock market on the national carbon market is greater than that of the national carbon market on the new energy stock market.There is no volatility spillover effect between the Guangdong carbon market and the traditional energy stock market,and there is also no volatility spillover effect between the Guangdong carbon market and the new energy stock market.Among the spillover effects of the energy stock market,the traditional energy stock market has a greater spillover effect on the new energy stock market,indicating that the traditional energy stock market plays a dominant role in information and risk transmission.Based on the above empirical analysis results,this paper puts forward corresponding suggestions to policy makers,energy stock companies and market investors respectively:policy makers should gradually improve the carbon quota allocation scheme when building the national carbon market,not only consider overall plans but also adjust measures to local conditions,strengthen financial support for new energy enterprises,improve macro-control ability,improve governance mechanism and maintain the stability of the stock market and carbon market.Energy stock companies should improve their innovation ability,accelerate industrial transformation and upgrading,and further strengthen the research and development of new energy technologies and equipment.Market investors should invest rationally,pay close attention to the spillover effect of carbon market and energy stock market and related policies and regulations,prevent risk transmission and avoid unnecessary losses.