A Study On The Relationship Between China’s Carbon Price And Fossil Energy Price

The development of economic activities can not be separated from the corresponding energy consumption,in recent years,China’s economic growth,national construction has made brilliant achievements,behind it is a large number of traditional fossil energy support,during the burning and use of fossil energy,the number of carbon dioxide emitted by China has attracted international attention and has great pressure.If China want to seek economic transformation and develop a good image of a responsible country in the world,it must adhere to low-carbon development.The international approach to controlling greenhouse gas emissions by means of economic regulation of is carbon trading.Over the years,the market for carbon emissions trading has become a pivotal new financial market abroad.At home,the carbon emissions trading market begins late,therefore,there is few related research.This paper focuses on the relationship between the domestic carbon emissions trading price and the fossil energy price.We try to analyze the conduction mechanism between two prices,so that we can enrich the domestic literature and improve China’s carbon emissions trading market.This paper first uses the theoretical analysis to comb the transmission mechanism of the carbon price and the fossil energy price.Then combined with the development of China’s carbon emissions trading market and the current situation of energy structure,this paper chooses the domestic coal market as the representative of the whole fossil energy market in China,constructs the two variable VAR model with China’s coal price and carbon price,and verifies the relationship by using various analytic methods.The empirical results show that under the background of China’s special system and environment,the carbon price can be reversed to influence coal price,but its influence is relatively small.This means that there is indeed a correlation between the carbon price and fossil fuels price in China,and mainly the former affects the latter,although the extent of this impact is very small,it still shows using carbon emissions trading system to control greenhouse gas emissions and improve the effectiveness of our energy structure is of great use.