Carbon Pricing and CCUS: Evidence from China

Anupam Dutta, Mohammad Rakib Uddin Bhuiyan, Gang-Jin Wang, Gazi Uddin and Ali Ahmed

Chapter 8 in Energy Transition and Carbon Neutrality in ASEAN:Developing Carbon Capture, Utilization and Storage Technologies, 2024, pp 203-224 from World Scientific Publishing Co. Pte. Ltd.

Abstract: While the process of carbon capture, utilization, and storage (CCUS) plays a pivotal role in mitigating climate change impacts, rising economic uncertainty, geopolitical conflict, and oil price volatility tend to retard CCUS deployment; which carbon emissions trading mechanisms can mitigate. The literature shows that such schemes are still immature in developing economies such as China, where carbon pricing seems to be a key strategy to lower CO2 power generation emissions. In this study, we thus investigate the Chinese carbon market’s volatility, concentrating on time-dependent jumps in emissions pricing. As jump-induced volatility represents an important risk, precise information thereon is important for increased carbon trading efficiency. The GARCH-jump process finds that such jumps do occur in the Chinese emissions market and that key uncertainty indicators including the aforementioned economic policy uncertainty, crude oil volatility index, and geopolitical risk can explain the resulting volatility, with important implications for policymakers and socially responsible investors.

Keywords: Carbon Capture; Utilization and Storage; Decarbonization and Net-Zero; Energy Transition; Development and Deployment; Policy Barriers and Pathways; Political Economy (search for similar items in EconPapers)
JEL-codes: O13 P28 Q4 Q43 Q5 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811288050_0008 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811288050_0008 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9789811288050_0008

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().