Quantile Time-Frequency Connectedness Between Carbon Emissions, Traditional and New Energy: Evidence from COVID-19 and the Russia-Ukraine Conflict
Year: 2024
Type: article
Abstract: This study examines the spillover effects of different market conditions in markets for carbon and energy, including both the new energy market and the traditional energy market. We employ the Quantile Vector Autoregression approach to discern the reciprocal impact dynamics among carbon emissions, traditional energy, and new energy sources during the period from January 1, 2019, to July 28, 2023. Firstly, our findings reveal a strong spillover effect in extreme states, irrespective of whether the change is highly positive or negative. Secondly, it is noteworthy that during the COVID-19 epidemic and the Russia-Ukraine conflict, the dynamics of interactions among carbon emissions, traditional energy, and new energy have not only intensified but also altered their respective roles within the context of spillover effects. Carbon markets and new energy serve as the net recipients and exhibit potential as effective hedging instruments. Finally, the epidemic and conflict have witnessed the growing significance of new energy, particularly in the long run, as evidenced by the notable expansion of the spillover effects from the new energy market. These findings provide implications for policymakers and eco-investors, offering valuable insights for formulating appropriate policy measures and tailored investment strategies across different frequent ranges.
Source: Green and Low-Carbon Economy
Authors: Wei Jiang, XiaoLiang Guo, SiFeng Bi
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
Awards: G1574165235, G2374039754
OpenAlex ID: W4405518900