Research On The Linkage Between China Carbon Emission Trading Market And Large-scale Asset

The rapid increase of carbon dioxide in the atmosphere leads to global climate change,which has an impact on many fields,such as economy and ecological environment,and urgently needs to be faced and solved by the whole world.Carbon emission trading uses market regulation mechanisms for low-cost emission reduction activities,which is an effective way to reduce greenhouse gas emissions,improve energy efficiency,and cope with global warming.This article uses carbon market related policies,economic theory and related econometric models to study the linkage between Chinese carbon market and large asset markets.Based on the interpretation of the concepts related to carbon credit trading,analysis the development and the characteristics of the EU and Chinese carbon market,this paper analyzes the following contents:First,the comprehensive application of cointegration test,impulse response function and variance decomposition based on VAR model,we study the correlation between Chinese carbon market and large-scale assets,and analyzes the interaction between Chinese carbon market and large-class assets.Second,use the DCC-MGARCH model to study the dynamic correlation between large-scale assets and Chinese carbon market.Third,based on the conclusion of empirical analysis,this paper puts forward some targeted policy suggestions for the development of carbon market in China.The research concludes as follows:first,the Shanghai carbon allowance price only has a significant effect on the CER futures price;the EUA futures price,energy price and stock index have a significant impact on the Shanghai carbon allowance price,and the CER futures price and exchange rate have no significant effect on the Shanghai carbon allowance price.Chinese carbon market and large-scale assets have obvious asymmetric effects in terms of correlation.Shanghai carbon allowance price do not have the ability to affect the price fluctuations of large-scale assets.Second,in terms of impact,energy price have the strongest impact on Shanghai carbon allowance price,but Shanghai carbon allowance price have a certain time lag impact on energy price.Third,Shanghai carbon allowance price in the past has its own volatility agglomeration accounted for 40%;External factors such as EU carbon price,energy price,stock market and exchange rate have more than 20%impact on Shanghai carbon allowance price fluctuations,energy prices have the biggest impact on Shanghai's carbon allowance price(63%).The impact of external factors such as energy prices will lead to changes in the long-term fluctuations in the price of carbon allowance in Shanghai.Fourth,there is a continuous feature of time-varying correlation between the Shanghai carbon allowance market and the large-scale asset market,and the volatility trend will last longer in the future.Fifth,there is a certain correlation between the Shanghai carbon allowance market and the EU carbon emission trading market,energy market,and stock index.Therefore,Chinese carbon market may be in line with international standards.In terms of policy suggestions,this paper points out that in the initial stage of the full launch of Chinese carbon market,we can strengthen the carbon market's liquidity and stabilize the carbon allowance price by strengthening the connection between the pilot carbon markets.At the same time,we should vigorously develop carbon futures,and then promote the construction of carbon financial markets,and promote the integration of Chinese carbon market with the international carbon market.In addition,a risk prevention mechanism needs to be set up between the markets to prevent the risk of carbon credits from spreading with the fluctuations of large asset classes.