 Asymmetric effects of oil shocks on carbon allowance price: Evidence from ChinaYan Zheng, Min Zhou and Fenghua Wen Energy Economics, 2021, vol. 97, issue C Abstract: This paper investigates the asymmetric relationship between oil shocks and the carbon emission trading market in China using the nonlinear autoregressive distributed lag (NARDL) model. The results show that: oil shocks have a long-run asymmetric effect on carbon allowance prices, and the oil supply shock is the main factor causing carbon allowance price changes in 2013–2020. The oil supply shock and oil demand shock cause the price of carbon allowances to rise, and the oil risk shock causes the price of carbon allowances to decrease. Moreover, we consider the impact of establishing a unified carbon market in 2017. We find that the main factors affecting carbon allowances' price have changed from oil demand shocks to oil supply shocks. This provides a meaningful reference for the establishment and improvement of China's carbon trading market. Keywords: Carbon emission trading market; Oil shocks; NARDL model; Asymmetric relationship (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:97:y:2021:i:c:s0140988321000888 DOI: 10.1016/j.eneco.2021.105183 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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