Policy uncertainty and carbon neutrality: Evidence from China

Qing Zeng, Feng Ma, Xinjie Lu and Weiju Xu

Finance Research Letters, 2022, vol. 47, issue PB

Abstract: This paper examines the effects of China's economic policy uncertainty (CEPU) index and climate policy uncertainty (CPU) index on the Wind carbon neutral concept (CNCI) index volatility. We find that both CEPU and CPU indices have significant effects on the CNCI volatility. In addition, when the market suffers more volatile risks, the CPU index has relatively better performance than the CEPU index for forecasting CNCI index volatility. This paper can provide new insights to realize China's goal of achieving peak emissions by 2030 and carbon neutrality by 2060.

Keywords: Wind carbon neutral concept index; China's economic policy uncertainty; Climate policy uncertainty; GARCH-MIDAS model; COVID-19 pandemic (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000848

DOI: 10.1016/j.frl.2022.102771

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