Research On The Dynamic Correlation Between Carbon Emission Trading And Green Financ

In this context,green finance,as a market with significant carbon emission suppression,will be a major direction for the development of the financial industry in the future,guided by the carbon peak,carbon neutral,and green development goals.To form a green and low-carbon production and lifestyle,it is also necessary to strictly control greenhouse gas emissions,and carbon emissions trading is an important means of controlling greenhouse gas emissions.However,the correlation between green finance and carbon emissions trading is unclear.Therefore,studying the correlation between carbon emissions trading and green finance can help clarify the relationship between the two,improve resource allocation efficiency and emission reduction efficiency,help achieve carbon peak and carbon neutral visions,and improve China’s carbon emissions trading market.This article selects five carbon pilot trading markets in Beijing,Guangdong,Hubei,Shanghai,and Shenzhen as the research objects.Based on the carbon emissions trading prices and green finance data of each pilot market,a VAR model is constructed,and Granger causality test and pulse analysis are conducted to study the impact of carbon emissions trading and green finance;Based on the above analysis,a DCC-MIDAS model is further constructed to analyze the dynamic correlation between carbon emissions trading and green finance.Based on empirical analysis,the following conclusions are drawn:(1)There is a Granger causality between carbon emissions trading and green finance in the five carbon pilot markets;(2)According to the pulse response analysis,it is found that the carbon emission trading prices in Guangdong and Hubei provinces are related to green finance,while the pulse response diagrams of carbon emission trading and green finance in the other three carbon pilot markets are not significant;(3)There is a positive correlation between carbon emissions trading and green finance in the pilot carbon markets,mainly due to the impact of green credit.The short-term dynamic correlation has time variability,while the long-term dynamic correlation is relatively stable and does not have time variability.Moreover,the development of China’s carbon market is not yet mature.Therefore,this article proposes the following suggestions: improve the carbon emissions trading market mechanism and system;Optimize the initial allocation method of quotas and enhance the vitality of the secondary market;Establish an information sharing mechanism and improve laws,regulations,and policy systems related to green finance;Continue to innovate green financial products and improve the level of green technology innovation of enterprises.