Research On The Impact Of Economic Policy Uncertainty On The Rate Of Return Of Carbon Emission Rights Marke

The carbon emission pilot market in China has been established since 2012,and the carbon emission pilot trading was officially launched in 2013.Eight carbon emission pilot markets have been gradually established.The national carbon emission trading market was officially launched in July 2021.The carbon emission rights market is a policy guided market that is artificially designed and established to control emissions,and its emergence and operation are highly dependent on the economic policy environment.Therefore,studying the impact of economic policy uncertainty on the yield of China’s carbon emissions market helps to understand the importance of a stable macro environment for the healthy development of the carbon emissions market.In addition,economic policy uncertainty can attract investors’ attention and affect their expectations and investment decisions;Investors’ investment behavior driven by limited attention can have an impact on market returns.So in the process of economic policy uncertainty affecting the market yield of carbon emission rights,is there a mesomeric effect of investors’ attention?Therefore,this paper first defines the concepts of economic policy uncertainty,carbon emissions trading and carbon emissions market yield,and analyzes the mechanism of economic policy uncertainty affecting carbon emissions market yield and the possible mesomeric effect of investors’ attention.Secondly,combined with the economic policy uncertainty index constructed by David and other scholars,we selected the active markets with complete carbon emission trading data in Hubei,Shenzhen,Shanghai,Beijing,Guangdong and other provinces as samples to build the investor concern index,and set a benchmark regression model and mesomeric effect model to empirically test the impact of economic policy uncertainty on the carbon emission market yield,and the possible mesomeric effect of investor concern.The results show that:(1)Economic policy uncertainty has a significant positive impact on the return rate of carbon emission rights market.(2)In the process of economic policy uncertainty affecting the market yield of carbon emission rights,there is a mesomeric effect of investor attention.The empirical results indicate that economic policy uncertainty will have a positive impact on the market yield of carbon emissions through emission reduction technologies,bank credit,and alternative assets;Economic policy uncertainty will increase investors’ attention,influencing their future expectations and asset portfolio through emission reduction technologies,bank credit,and alternative assets,thereby having a positive impact on the return rate of carbon emission rights market.Based on the research findings,this article proposes policy recommendations from three aspects: investors,enterprises,and the government.In terms of investors:reasonably guiding investor expectations,strengthening investor education,and increasing institutional investor participation;On the enterprise side: strengthening enterprise information disclosure,establishing incentive mechanisms for technological innovation,and establishing cost sharing mechanisms;On the government side:increase information transparency,strengthen market regulation,and improve risk control mechanisms.I hope that this article’s research on the pilot market for carbon emission rights can provide reference for the development and improvement of the national carbon emission rights market.