Network herding of energy funds in the post-Carbon-Peak Policy era: Does it benefit profitability and stability?

Shuai Lu, Shouwei Li, Wei Zhou and Wenke Yang

Energy Economics, 2022, vol. 109, issue C

Abstract: This paper detects the Carbon-Peak Policy effect on energy funds' network herding measured by a mixed network centrality and the herding effect on profitability and stability using a sample of 231 funds in China between 2008 and 2019. By examining the dynamic changes of the network topological structure and module characteristics, we find a significant presence of the post-CPP network herding in the energy funds. Our results indicate a positive post-CPP network herding effect on the energy funds' profitability and risk resistance in the short term. However, the positive post-CPP network herding effect reverses in the detection of the long-run stability. In contrast, it triggers larger systemic risks. Moreover, the network herding effect appears to exhibit merely in small-size funds.

Keywords: Carbon peak policy; Network herding; Energy funds; Topological analysis; Financial stability (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:109:y:2022:i:c:s0140988322001256

DOI: 10.1016/j.eneco.2022.105948

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