Re-examining the nexus between Chinese carbon markets with energy and non-energy commodity markets in a novel risk spillover network approach

A. Bouteska, Mashuk Rahman, M. Kabir Hassan and Benito A. Sanchez

Pacific-Basin Finance Journal, 2025, vol. 92, issue C

Abstract: This research aims to explore the impact of five green energy subsectors (specifically, the solar power generation concept index, wind power generation concept index, Geothermal energy concept index, nuclear power concept index, and biomass and biofuel concept index) as well as five commodity indices (NHECI Nanhua energy and chemical index, NHAI Nanhua agricultural index, NHPMI Nanhua precious metal index, NHMI Nanhua metal index, and NHII Nanhua industry index) on restricted carbon emissions within five cities and provinces: Beijing, Guangdong, Hubei, Shanghai, and Shenzhen. The study analyzes data reflecting the fluctuation in CO2 emissions during three significant periods: the Covid-19 pandemic, the Russia-Ukraine conflict, and the China recession, spanning from January 1, 2022, to September 30, 2023. Utilizing the Vector Autoregressive (VAR) model and an innovative quantile connectedness framework, the research uncovers a substantial degree of cross-market risk transmission, exceeding 80 %, particularly during and after the Covid-19 pandemic. This implies that the shocks from the Covid-19 pandemic and the Russia-Ukraine conflict have heightened the interconnections between carbon emissions and both clean energy and non-clean commodity markets.

Keywords: Chinese carbon markets; Green energy; Energy; Non-energy commodity; Risk spillover network with QVAR; China (search for similar items in EconPapers)
JEL-codes: C32 G15 Q40 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X2500157X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:92:y:2025:i:c:s0927538x2500157x

DOI: 10.1016/j.pacfin.2025.102820

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().