Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in China
With the continuous expansion scale of carbon market and the development of carbon trading mechanism, carbon emission right, as a new financial asset, is being brought into the category of asset allocation by more and more investors. As the burning of coal is the major source of carbon dioxide, Chin...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Hindawi Limited
2022-01-01
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| Series: | Advances in Civil Engineering |
| Online Access: | http://dx.doi.org/10.1155/2022/7523563 |
| _version_ | 1826998453234827264 |
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| author | Shaohui Zou Tian Zhang |
| author_facet | Shaohui Zou Tian Zhang |
| author_sort | Shaohui Zou |
| collection | DOAJ |
| description | With the continuous expansion scale of carbon market and the development of carbon trading mechanism, carbon emission right, as a new financial asset, is being brought into the category of asset allocation by more and more investors. As the burning of coal is the major source of carbon dioxide, China is facing serious ecological and environmental problems, which restrict the development of low-carbon economy. In order to reach the carbon dioxide emission reduction targets and promote the development of green investment market, the carbon market should be a good emission reduction measure. The correlation and dynamic volatility spillover among coal, carbon, and green investing markets are becoming a hot topic for current research. The paper applies both VAR-GARCH-DCC and VAR-GARCH-BEKK models to draw some significant conclusions. (1) The green investment market, coal market, and Shenzhen carbon market show obvious time-varying correlation, and the volatility of the green investment market is higher. (2) There is a bidirectional Granger causality between green investing and coal markets. (3) The investment portfolio and hedging mechanism of the market are established to reduce the risk and help investors obtain higher returns. |
| first_indexed | 2024-04-11T18:13:04Z |
| format | Article |
| id | doaj.art-a030f388e3a84b0ab11ee8e12f6ebf10 |
| institution | Directory Open Access Journal |
| issn | 1687-8094 |
| language | English |
| last_indexed | 2025-02-18T10:14:33Z |
| publishDate | 2022-01-01 |
| publisher | Hindawi Limited |
| record_format | Article |
| series | Advances in Civil Engineering |
| spelling | doaj.art-a030f388e3a84b0ab11ee8e12f6ebf102024-11-02T05:32:29ZengHindawi LimitedAdvances in Civil Engineering1687-80942022-01-01202210.1155/2022/7523563Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in ChinaShaohui Zou0Tian Zhang1School of EnergySchool of EnergyWith the continuous expansion scale of carbon market and the development of carbon trading mechanism, carbon emission right, as a new financial asset, is being brought into the category of asset allocation by more and more investors. As the burning of coal is the major source of carbon dioxide, China is facing serious ecological and environmental problems, which restrict the development of low-carbon economy. In order to reach the carbon dioxide emission reduction targets and promote the development of green investment market, the carbon market should be a good emission reduction measure. The correlation and dynamic volatility spillover among coal, carbon, and green investing markets are becoming a hot topic for current research. The paper applies both VAR-GARCH-DCC and VAR-GARCH-BEKK models to draw some significant conclusions. (1) The green investment market, coal market, and Shenzhen carbon market show obvious time-varying correlation, and the volatility of the green investment market is higher. (2) There is a bidirectional Granger causality between green investing and coal markets. (3) The investment portfolio and hedging mechanism of the market are established to reduce the risk and help investors obtain higher returns.http://dx.doi.org/10.1155/2022/7523563 |
| spellingShingle | Shaohui Zou Tian Zhang Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in China Advances in Civil Engineering |
| title | Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in China |
| title_full | Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in China |
| title_fullStr | Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in China |
| title_full_unstemmed | Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in China |
| title_short | Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in China |
| title_sort | correlation and dynamic volatility spillover between green investing market coal market and co2 emissions evidence from shenzhen carbon market in china |
| url | http://dx.doi.org/10.1155/2022/7523563 |
| work_keys_str_mv | AT shaohuizou correlationanddynamicvolatilityspilloverbetweengreeninvestingmarketcoalmarketandco2emissionsevidencefromshenzhencarbonmarketinchina AT tianzhang correlationanddynamicvolatilityspilloverbetweengreeninvestingmarketcoalmarketandco2emissionsevidencefromshenzhencarbonmarketinchina |