Examining the Spillover Effects of Renewable Energy Policies on China’s Traditional Energy Industries and Stock Markets

Haiwen Zhao, Miao Yu, Juan Meng () and Yonghong Jiang
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Haiwen Zhao: Médicis Business School, 75013 Paris, France
Miao Yu: School of Mathematics and Information Science, Guangzhou University, Guangzhou 510006, China
Juan Meng: Business School, Hunan First Normal University, Changsha 410205, China
Yonghong Jiang: School of Economics, Jinan University, Guangzhou 510006, China

Energies, 2024, vol. 17, issue 11, 1-18

Abstract: With the development and refinement of the carbon emissions trading market, the relationship between the carbon market and the stock market has grown increasingly intertwined. This has led to a surge in research investigating the interactions between the carbon market and related sectors. This study examines the intensity and direction of spillover effects among ten industries associated with carbon emissions, spanning traditional and emerging energy sectors. Through static analysis, we find that spillover effects between industries in the carbon and stock markets are bidirectional and asymmetric. Dynamic analysis reveals that the carbon market, acting as the primary recipient of spillover effects, is notably influenced by traditional energy industries such as coal and oil, followed by photovoltaics, new energy vehicles, and others. The magnitude of these spillover effects is subject to fluctuations influenced by energy crises and events like the COVID-19 pandemic, while policy interventions can alter the overall trends in net spillover effects across various industries.

Keywords: carbon market; stock market; traditional energy markets; new energy markets; dynamic spillover effects (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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