Research On Risk Spillover Effect Of Carbon Market In C Hina

Global carbon diox ide emissions have become the focus of climate and environmental issues.At present,carbon market tradin g has become an important means of carbon dioxide emission reduction and low-carbon economic transformation.At the same time,the process of China’s carbon market unification has entered a critical period.Therefore,it is of great significance for China to promote and improve the domestic carbon market upgrading.To some extent,the financial attribute of carbon market makes it have the same unstable volatility spillover risk as the traditional financial market.In addition,the geographical location of each carbon market is different,the trading volume and turnover volume are different,and the participants are different,which makes the financial risk of carbon market more specific and full of uncertainty.The asymmetric risk transmission between each carbon market also makes it difficult to unify the carbon market It’s full of more challenges.By selecting the daily price data of China’s carbon market from May 1,2014 to July 3,2020,firstly,on the basis of literature analysis,this paper makes simple data descriptive statistics and static correlation analysis on China’s carbon market price.Secondly,it constructs DCC-GARCH model to measure the dynamic correlation of prices among different carbon markets in China;and uses BEKK-GARCH model to measure different carbon markets in China under normal conditions The quantile regression model is used to measure the Risk Spillover Effect between different carbon markets in China under extreme conditions.Finally,the above empirical results are summarized and discussed.The results show that:under normal conditions,there is a significant static and dynamic correlation among carbon markets,and the Risk Spillover Effect among carbon markets is asymmetric,specifically in Guangdong,Hubei and Shanghai markets showing a strong two-way Risk Spillover Effect;other carbon markets also have different degrees of one-way Risk Spillover effect.In the extreme conditions,Beijing,Shanghai and Shenzhen are more intense.Under extreme conditions,their risk contribution increases,which has a stronger impact on other carbon markets.The above results show that there are uncertainty and asymmetric risk spillover effects in China’s carbon market.It further tests the advantages of the unified operation of China’s carbon market and the necessity of speeding up the process of carbon market unification.In view of the uncertainty of carbon market risk,this paper puts forward corresponding suggestions and measures for China’s carbon market from two aspects of control measures and policy suggestions.So as to accelerate the upgrading development of China’s carbon market and better realize the Risk Spillover control of carbon market price.