An Empirical Study On The Effectiveness Of China's Carbon Emissions Market

In 2005,the "Kyoto Protocol" further clarified the requirement that countries in the world must strictly limit greenhouse gas emissions in accordance with the provisions of the agreement.As a big country with a strong sense of responsibility,China must also bear the responsibility of reducing greenhouse gas emissions,better protect the human living environment and maintain sustainable development.Since 2011,the National Development and Reform Commission has successively approved nine provinces,cities and regions including Beijing,Shanghai and Shenzhen to set up pilot markets for carbon emissions trading.The volatility and effectiveness of financial market prices have always been one of the topics that scholars have focused on research.As the carbon emission market is an emerging financial market,various mechanisms and rules need to be improved.The application of market efficiency and price volatility theory to the evaluation and analysis of China's carbon market can promote the market's own equilibrium price formation mechanism,promote the improvement of the market's carbon emission efficiency,and provide some theoretical and practical significance for the development and improvement of the national carbon market.References and suggestions.Due to the different establishment time,internal mechanism and geographical location characteristics of each carbon emission pilot market in China,the availability of important data is different.Therefore,Shenzhen,Shanghai,Beijing,Guangdong,Tianjin,Hubei,Chongqing and Fujian with more complete important data are selected.The carbon pilot market is further classified and discussed based on market characteristics and other factors.After establishing GARCH model and GARCH-M model for these carbon pilot markets to analyze their heteroscedasticity characteristics,market price fluctuation characteristics and volatility aggregation,MCMC-SV models are established for these markets to test.The results show that since China began to implement the carbon emission pilot policy in 2013,all 8 of the 9 pilots that started formal trading have not fully met the conditions of a weak and efficient market,and the past trading information of the pilot market will affect the current transaction.Although the eight pilot markets did not meet the conditions of a weak and efficient market,there are differences in the trading conditions,risk conditions,and construction of market trading mechanisms in each market.Therefore,relevant departments should adopt a unified and perfect market system mechanism,gradually give full play to the basic role of market resource allocation,increase market and inter-market activity,rationally use income redistribution to amplify the effects of the carbon market and other measures to promote the maturity and perfect.