A Study on the Correlation between Carbon Prices and Energy Companies’ Stock Prices Based on the Copula Model

Ying Yang ()
Additional contact information
Ying Yang: Nankai University

A chapter in Proceedings of the 2025 10th International Conference on Social Sciences and Economic Development (ICSSED 2025), 2025, pp 757-765 from Springer

Abstract: Abstract Since the 21st century, global carbon emissions have been positively correlated with economic development. Research has shifted to exploring the relationship between carbon prices and energy companies’ stock prices. This is crucial for carbon asset management and market performance, especially in China, where the carbon trading market is still in its infancy. This study constructs a theoretical framework linking carbon prices, corporate value, and stock prices. Empirical analysis using the ARIMA(1,0,1)-GARCH(1,1)-t model and the Gumbel Copula function reveals that both carbon prices and energy stock prices exhibit leptokurtosis and volatility clustering, with Hubei carbon prices showing higher volatility. Traditional energy companies’ stock prices show low correlation with carbon prices, while new energy companies’ stock prices are positively correlated, particularly in the upper tail. Tail correlations between carbon prices and energy stock prices are weak, indicating low market linkage effects. The study recommends government support for the new energy industry, promotion of low-carbon technologies, and a green economic transformation. New energy companies should leverage carbon assets to enhance profits, while traditional energy companies should upgrade their low-carbon technologies and improve energy efficiency.

Keywords: Copula model; Carbon emission price; Energy companies; Correlation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:advbcp:978-94-6463-734-2_83

Ordering information: This item can be ordered from
http://www.springer.com/9789464637342

DOI: 10.2991/978-94-6463-734-2_83

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().