The Correlation Research On Chinese Carbon Emissions Trading Market And Stock Market

Air pollution,climate warming,haze and other climate change has been widespread concern around the world.But it is certain that human activities(such as deforestation etc.)lead to the large number of greenhouse gas emissions and carbon reduction which has an important effect on climate change.The issue of climate change related to human development has extended from a simple scientific research issue to a major international issue,which is becoming the focus issue of all countries.British economist Lord Nicholas Stern said,“climate change has become the world experienced the most serious market failure".In order to effectively correct this market failure,the approach of carbon emissions trading market came into being.China is now in the process of rapid development of industrialization and urbanization,resulting in a large number of greenhouse gas emissions,which is facing enormous emission reduction pressures.In 2011,the national development and Reform Commission issued "on the development of carbon emissions trading pilot work notice",then Beijing,Tianjin,Shanghai,approved by Chongqing,Hubei,Guangdong,Shenzhen 7 provinces to carry out carbon emissions trading pilot,which indicates that China has taken an important step forward in terms of carbon emissions trading system construction.The current China's carbon emissions trading market in the transition period from the pilot phase to the national carbon emissions trading market,based on this background,the correlation between China's carbon emissions trading market and the stock market are discussed,in order to improve China's carbon emissions trading market,strengthen the relationship between the two cities,making more and more capital can flow to the carbon emissions trading market,and promote China's carbon finance long-term healthy development.In the aspect of writing,in the first chapter,I use the literature research method to study the relevant literatures of carbon emissions trading,and understand the theoretical results and practical results in related fields.In the second chapter,the paper summarizes the relevant theoretical basis of carbon emissions trading and defines the relevant concepts.In the next third chapters,it analyzes the operation mechanism and operation status of China's carbon emissions trading market.The fourth chapter of the empirical part of this paper to test the mutation of structure ofcarbon price and stock price series,found the carbon price and stock price series are the occurrence of a number of structural change,and the use of Bai-Perron structure mutation test to identify two sequences are four structure mutation point and analysis of the relevant reasons.Based on the carbon price series and the stock price sequence,the VAR model of carbon price and stock price is constructed to analyze impulse response and variance decomposition.At the end of this paper,based on the results of empirical analysis,we conclude that China's carbon emissions trading market is not obvious correlation with the stock market and put forward some suggestions to improve China's carbon emissions trading market.