A Study on the Price Transmission Mechanism of Environmental Benefits for Green Electricity in the Carbon Market and Green Certificate Markets: A Case Study of the East China Power Grid

Xinhong Wu, Hao Huang (), Bin Guo, Lifei Song (), Yongwen Yang, Qifen Li and Fanyue Qian
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Xinhong Wu: State Grid Zhejiang Integrated Energy Service Company, Hangzhou 311500, China
Hao Huang: State Grid Zhejiang Integrated Energy Service Company, Hangzhou 311500, China
Bin Guo: College of Energy and Mechanical Engineering, Shanghai University of Electric Power, Shanghai 201306, China
Lifei Song: College of Energy and Mechanical Engineering, Shanghai University of Electric Power, Shanghai 201306, China
Yongwen Yang: College of Energy and Mechanical Engineering, Shanghai University of Electric Power, Shanghai 201306, China
Qifen Li: College of Energy and Mechanical Engineering, Shanghai University of Electric Power, Shanghai 201306, China
Fanyue Qian: College of Energy and Mechanical Engineering, Shanghai University of Electric Power, Shanghai 201306, China

Energies, 2025, vol. 18, issue 9, 1-19

Abstract: As the global energy transition progresses, green electricity, which is crucial for low-carbon systems, has gained attention. However, the lack of effective market linkages hinders a full understanding of the price transmission effects across green markets. This study uses the Vector Autoregression (VAR) model and Granger causality tests to analyze the price transmission and lag effects between the carbon, green certificate, and China Certified Emission Reduction (CCER) Markets. The findings reveal complex price linkages, offering theoretical insights and policy recommendations for optimizing green electricity markets and environmental rights trading.

Keywords: green electricity; green certificate; price signal transmission; value of environmental rights and interests (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: 2025
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