Correlation Between Chinese Carbon Market and New Energy Market——Evidence Based on Wavelet Analysis and Granger Causality Tests

Bozhao Yu

doi:10.54097/rn7t6w26

Authors

Bozhao Yu

DOI:

https://doi.org/10.54097/rn7t6w26

Keywords:

Carbon Market, New Energy Markets, Morlet Wavelet Model, Quantile Granger Causality Test.

Abstract

Based on the background of global energy conservation and emission reduction, this paper studies the correlation between Chinese carbon market and new energy market. Sample data are from August 2013 to January 2024. The empirical results of the morlet wavelet model and quantile Granger causality test show that the carbon market is ahead of the new energy market in the medium- and long-term dimensions, and that Guangdong carbon allowances and Beijing carbon allowances Granger affect the new energy market during bull and bear markets, respectively.And the impact of the carbon market on some segments of the new energy market has obvious similarities.The findings of this paper confirm that the carbon market contributes to the development of the new energy industry, which in turn has a positive significance for the transition to a green and low-carbon economy.

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