Work

Low carbon policies and the systemic risk of mutual funds — the case of the “double carbon” target in China

Year: 2025

Type: article

Abstract: We construct a systemic risk measurement model for funds based on the common asset holding association and fire-sale mechanism. We analyze the impact of low-carbon policies on the systemic risk of funds, and the results indicate that the “double carbon” target would have an impact on the systemic risk of funds. There are significant differences in the impact of different carbon reduction paths of the “double carbon” target on the systemic risk of funds. The impact of the energy system transition on the systemic risk of the fund is greater than that of the CCS deployment. Furthermore, our findings indicate that funds that implement brown and green investment strategies would experience different outcomes when the “double carbon” target is implemented.

Source: Humanities and Social Sciences Communications

DOI: 10.1057/s41599-025-05996-1

Authors: Hu Wang, Shangyan Bao, Shuyang Jiang

Institutions: Yangzhou University, Nanjing University of Posts and Telecommunications

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: gold

Estimated APC paid: $1,890