The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU

We mainly focus on the degree of marketisation of China’s carbon emissions trading from two aspects. Firstly, based on the financial market theory, the different characteristics of the construction of the EU and China’s carbon emissions trading market are compared. Secondly, the VAR-MVGARCH-DCC mode...

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Main Authors: Runhong Lin, Tongjuan Cai
Format: Article
Language:English
Published: MDPI AG 2025-02-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/18/5/1059
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author Runhong Lin
Tongjuan Cai
author_facet Runhong Lin
Tongjuan Cai
author_sort Runhong Lin
collection DOAJ
description We mainly focus on the degree of marketisation of China’s carbon emissions trading from two aspects. Firstly, based on the financial market theory, the different characteristics of the construction of the EU and China’s carbon emissions trading market are compared. Secondly, the VAR-MVGARCH-DCC model is used to empirically analyze the dynamic correlation between the carbon emissions trading market and the stock market. The results show that the marketisation degree of China’s carbon emissions trading still has much room for improvement compared with the EU, and the carbon emission market has a significant guiding effect on the stock market. Therefore, to improve the carbon emissions trading system, we should pay attention to the influence of financial factors on carbon emissions trading and the establishment of transmission channels from the carbon market to the stock market. It is recommended to learn from the experience of the European Union and to take key industries as a guide to create a modern carbon financial system with more Chinese characteristics.
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series Energies
spelling doaj-art-3adaf6c8b8a444b18a5cfd0eeb7b059c2025-08-20T02:59:14ZengMDPI AGEnergies1996-10732025-02-01185105910.3390/en18051059The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EURunhong Lin0Tongjuan Cai1School of International Trade and Economics, University of International Business and Economics, Beijing 100029, ChinaChongyang Institute for Financial Studies, Renmin University of China, Beijing 100872, ChinaWe mainly focus on the degree of marketisation of China’s carbon emissions trading from two aspects. Firstly, based on the financial market theory, the different characteristics of the construction of the EU and China’s carbon emissions trading market are compared. Secondly, the VAR-MVGARCH-DCC model is used to empirically analyze the dynamic correlation between the carbon emissions trading market and the stock market. The results show that the marketisation degree of China’s carbon emissions trading still has much room for improvement compared with the EU, and the carbon emission market has a significant guiding effect on the stock market. Therefore, to improve the carbon emissions trading system, we should pay attention to the influence of financial factors on carbon emissions trading and the establishment of transmission channels from the carbon market to the stock market. It is recommended to learn from the experience of the European Union and to take key industries as a guide to create a modern carbon financial system with more Chinese characteristics.https://www.mdpi.com/1996-1073/18/5/1059dual-carbon targetcarbon emissions trading systemcarbon market and stock marketVAR-MVGARCH-DCC modellinkage
spellingShingle Runhong Lin
Tongjuan Cai
The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU
Energies
dual-carbon target
carbon emissions trading system
carbon market and stock market
VAR-MVGARCH-DCC model
linkage
title The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU
title_full The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU
title_fullStr The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU
title_full_unstemmed The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU
title_short The Market-Oriented Development of China’s Carbon Emissions Trading: Based on the Comparative Analysis of China and EU
title_sort market oriented development of china s carbon emissions trading based on the comparative analysis of china and eu
topic dual-carbon target
carbon emissions trading system
carbon market and stock market
VAR-MVGARCH-DCC model
linkage
url https://www.mdpi.com/1996-1073/18/5/1059
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AT runhonglin marketorienteddevelopmentofchinascarbonemissionstradingbasedonthecomparativeanalysisofchinaandeu
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