Global climate policy uncertainty and carbon market volatility: Aggravating or mitigating across market conditions?

Jihong Xiao, Yudong Wang and Danyan Wen

Economics Letters, 2025, vol. 254, issue C

Abstract: Using quantile regression, this paper finds that lagged changes in global climate policy uncertainty (GCPU) reduce carbon market volatility during market turmoil. This mitigating effect surpasses that of the US CPU and is amplified by financial market fear.

Keywords: Global climate policy uncertainty; Carbon market volatility; Fear market fear; Quantile regression (search for similar items in EconPapers)
JEL-codes: C32 G15 Q54 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:254:y:2025:i:c:s0165176525002782

DOI: 10.1016/j.econlet.2025.112441

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