China’s Carbon Emission Rights Trading Price Empirical Study Of Influencing Factors

As climate change issues become the focus of academic research,and the research on this subject continues to deepen,governments and interest groups will increasingly look into the carbon emission rights market.As one of the main driving forces of the carbon emission rights market,carbon emission rights prices play an important role in promoting the reduction of carbon emissions.The fluctuation of carbon emission price is caused by the combination of various factors,and its typical characteristics are nonlinearity,dynamics and uncertainty.This paper will focus on the analysis of factors affecting the price of carbon emission rights.This paper intends to select a combination of theoretical and empirical research methods to conduct in-depth research and analysis on the factors affecting the price of carbon emission rights.First of all,the article introduces the background and research significance of carbon emission rights,and conducts in-depth research and analysis on the main theoretical basis of carbon emission trading.Then define the carbon emission rights and related concepts,classify the carbon emission rights market,and study the carbon emission rights market from three aspects,namely,trading methods,trading systems and transaction prices.Based on this,this paper conducts an in-depth study on the current status of China’s carbon emission trading pilots,and briefly analyzes its price fluctuations.After that,based on the volatility of its price,this paper studies the impact of environmental factors,policy factors and economic factors on the price of carbon emission rights.Due to the difficulty of quantification of policy factors,this paper selects four indicators of coal price,natural gas price,circulation market capitalization index and environmental index,and analyzes the correlation as the influencing factors of carbon emission trading price.Based on empirical methods such as co-integration test,VEC model,Granger causality test,impulse response,and variance decomposition,the relevant factors are tested.The results show that there is a long-term equilibrium relationship between them.At the same time,it is found that the main factor affecting the price of carbon emission trading is itself,and the impact is lagging.In addition,the energy price is positively correlated with the carbon emission price,and the environmental index is negatively correlated with the carbon emission price.For a long time,the environmental index has the deepest impact on the carbon emission price.In the short term,energy prices have the greatest impact on carbon emission rights prices,followed by environmental indices.Finally,based on the results of the above theoretical and empirical analysis,the relevant recommendations for stabilizing the price fluctuations of China’s carbon emission rights are proposed.Including complete emission reduction policies,customized technical standards,creation of intermediary platforms and a variety of emission reduction products in parallel and other aspects.