 Heterogeneity of regional carbon emission markets in China: Evidence from multidimensional determinantsXiyong Dong and John F. Zhang Energy Economics, 2024, vol. 138, issue C Abstract: The Chinese carbon markets are heterogeneously distributed with different regional economies and natural resource endowments. This paper examines how carbon prices behave across regional emission markets in China using the dynamic model averaging (DMA) approach. The results show that the Beijing, Guangdong, and Hubei markets are increasingly affected by various factors. In contrast, the Shanghai market gradually becomes less affected after 2020, both in the current and forecast periods. Moreover, geopolitical risk and new energy price are important variables for the concurrent relation, and domestic oil price and geopolitical risk are important variables for predicting carbon prices. Nevertheless, there are significant differences in intensity and signs among the four carbon markets affected by various factors, as well as large differences between the results for the current and forecast periods. These results indicate the heterogeneity of regional carbon markets; therefore, caution should be taken when using a single carbon market to represent the entire Chinese market. Keywords: Carbon price; Determining factors; China; Dynamic model averaging (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:138:y:2024:i:c:s0140988324005437 DOI: 10.1016/j.eneco.2024.107835 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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