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Accurately identifying changes in carbon trading prices can provide reasonable reference indicators for a government's macrocontrol and can also help companies more effectively avoid risks brought by carbon emissions and increase the income of carbon assets. Based on the Prophet model, LSTM neural network model, and backpropagation (BP), this paper proposes a method to predict carbon trading prices using the ensemble learning model and uses the Hubei carbon trading market data to predict carbon trading prices. Results show that in terms of accuracy, the Prophet-LSTM-BP ensemble learning model achieves better predictive ability than existing models; its RMSE, MAE, and MAPE are 1.479, 0.951, and 2.135, respectively, which are markedly smaller than the Prophet model's 5.631, 4.471, and 9.661, and the LSTM model's 3.352, 3.105, and 6.880, respectively. Compared with the traditional time series ARIMA model, the MAPE of ARIMA reaches 12.933, which is nearly 1.5 times that of the Prophet model, nearly 2 times that of the LSTM model, and nearly 7 times that of the ensemble learning model. In terms of applicability, when the model is applied to the national carbon trading market, the difference in MAPE compared with the Hubei carbon trading market is only 0.6%, and the other parameters are not more than 16%. The model improves the relevant research on carbon trading price predicting, and concurrently, this method provides ideas for carbon trading price predicting in other carbon trading markets and promotes the sustainable development of the national carbon trading market. [ABSTRACT FROM AUTHOR]

Predicting carbon prices is crucial for the growth of China's carbon trading industry. This paper proposes a residual correction model that considers multiple influencing factors. First, the best historical data and main external factors input by the model are determined by using the partial autocorrelation function and Spearman correlation analysis, and the carbon price forecasting index system is constructed. Second, the whale optimization algorithm (WOA) is utilized to determine the optimal parameters of the extreme gradient boosting (XGBoost), and the WOA‐XGBoost model is built to perform preliminary carbon price forecasts and obtain the residual series. Finally, the carbon price residual series undergoes decomposition into multiple components utilizing the complete ensemble empirical mode decomposition for subsequent forecasting and the aggregation of outcomes. Experiments are conducted to predict two carbon trading markets in Hubei and Guangzhou, and a feature importance analysis is performed. The results indicate that the proposed hybrid model consistently outperforms the comparative models in terms of prediction accuracy. Furthermore, it is revealed that historical carbon prices and European Union carbon prices are the key factors influencing the prediction of carbon market prices. [ABSTRACT FROM AUTHOR]

Carbon trading as a vital tool to reduce carbon dioxide emissions has developed rapidly in recent years. Reasonable prediction of the carbon price can improve the risk management in the carbon trading market and make healthy development of the carbon trading market. This paper aims to enhance the predictive performance of carbon price in the China's carbon markets, especially the China's national carbon market, by adding the online news sentiment index which is a kind of unconstructed data, to a deep learning model using traditionally constructed predictors innovatively. Long short–term memory (LSTM) network was applied as the primary model to predict carbon price and random forest as the additional experiment to validate the effectiveness of online news sentiment. The results in the China's national carbon market and Hubei pilot carbon market both proved that the model including the sentiment index performed better than the model does not, and the improvement was significant. [ABSTRACT FROM AUTHOR]

The impact of global greenhouse gas emissions is increasingly serious, and the development of green low-carbon circular economy has become an inevitable trend for the development of all countries in the world. To achieve emission peak and carbon neutrality is the primary goal of energy conservation and emission reduction. As the core province in central China, Hubei Province is under prominent pressure of carbon emission reduction. In this paper, the future development trend of carbon emissions is analyzed, and the emission peak value and carbon peak time in Hubei Province is predicted. Firstly, the generalized Divisia index method (GDIM) model is proposed to determine the main influencing factors of carbon emissions in Hubei Province. Secondly, based on the main influencing factors identified, a novel STIRPAT (Stochastic Impacts by Regression on Population, Affluence, and Technology) extended model with ridge regression is established to predict carbon emissions. Thirdly, the scenario analysis method is used to set the variables of the STIRPAT extended model and to predict the emission peak value and carbon peak time in Hubei Province. The results show that Hubei Province's carbon emissions peaked first in 2025, with a peak value of 361.81 million tons. Finally, according to the prediction results, the corresponding suggestions on carbon emission reduction are provided in three aspects of industrial structure, energy structure, and urbanization, so as to help government establish a green, low-carbon, and circular development economic system and achieve the industry's cleaner production and sustainable development of society. [ABSTRACT FROM AUTHOR]

Using the quantile GARCH model estimators to gauge the bidirectional risk magnitude and the Granger causality test in risk distributions to detect the existence of risk spillovers, this paper explores the extreme risk spillovers of China's regional carbon markets to local listed firm's stock returns. From the perspectives of macro region level and micro firm level, the findings are outlined as follows. First, among the top three active carbon trading pilots (Hubei, Guangdong, and Shenzhen), Hubei pilot exhibits significant "low risk and high profit" features. Second, the predominant risk spillover effects to local listed firms are heterogeneous across pilots. Specifically, Hubei pilot is dominated by "up-to-down" effect, and Guangdong pilot is dominated by "down-to-down" effect, while Shenzhen pilot has no predominant effect. The heterogeneous risk spillover performance may be caused by the regional divergence in economic development, industry structure, and cap setting concerning each pilot. Third, the risk transmission performance from carbon allowance price to local listed firm's stock returns depends on the firm's belonging sector. That is, environment-related firms, either environment-friendly firms or pollution-intensive firms, are more susceptible to carbon markets' risks compared with environment-unrelated firms. This paper supplies novel information on the risk transmission from carbon markets to local economic entities, which proves valuable not only for firms to improve risk aversion ability but also for policy-makers to perfect carbon markets' mechanism. [ABSTRACT FROM AUTHOR]

According to the proposal of Kyoto protocol, carbon dioxide emission rights are traded as a commodity, and carbon emission trading market emerges as the times require. As the world's largest carbon emitter, China has established eight pilot markets for carbon emission trading. Selecting the closing price of eight carbon trading markets from the establishment to June 23, 2020, this paper analyzes the daily, weekly, and monthly return series data, using the first-order autoregressive process to adjust the daily income series to eliminate the weak trading market effect and then comprehensively uses the traditional variance ratio test and multiple variance ratio test to analyze the weak-form market efficiency of the eight carbon trading markets. The empirical results show that most of the carbon trading markets are non-weak-form market efficiency, and only Tianjin, Shanghai, and Hubei markets are weak-form market efficiency under the daily trading data. However, with the increase of carbon holding period, the weak-form market efficiency continues to strengthen. It shows that liquidity, quantity, and information transparency are important factors that affect the market efficiency. [ABSTRACT FROM AUTHOR]

Accurate carbon price prediction is a crucial task for the carbon trading market. Previous studies have ignored the impact of online data and are limited to point predictions, which brings challenges to the accurate forecasting of carbon prices. To address those issues, this paper proposes an interval-valued carbon price forecasting method based on web search data and social media sentiment. First, we collect web search data and social media sentiment to improve prediction performance by synthesizing multiple types of data information. Second, we employ principal component analysis (PCA) to preprocess high-dimensional web search data, and utilize BosonNLP for quantifying social media information, thereby enhancing the predictability of the dataset. Subsequently, a variational mode decomposition (VMD) is applied to the carbon price and online data, followed by utilizing particle swarm optimization support vector regression (PSO-SVR) to predict each sub-modes and summing them up to obtain the ultimate forecasting outcome. Finally, using carbon prices in Guangdong and Hubei provinces as case studies, the experimental results demonstrate that web search data and social media sentiment significantly enhance the predictive accuracy of interval-valued carbon prices. Furthermore, the proposed VMD-PSO-SVR outperforms other comparative models in the accuracy and reliability of interval-valued forecasting. [ABSTRACT FROM AUTHOR]

Whether or not China can succeed at the forefront of international development in the coming decades will largely hinge on its ability to adapt to low-carbon economic development and its efforts to promote the Unified National Emission Trading System (UNETS). To understand the evolution of China's carbon market, this paper firstly divides the development of China's regional carbon markets into three phases: pilot construction (phase 1, before 31 May 2015), preparation for the UNETS (phase 2, 1 June 2015–19 December 2017), and formal construction of the UNETS (phase 3, 20 December 2017–present). Then this research reviews the trading performance and employs four robust variance ratio (VR) tests to capture structural changes and examine the efficiency of China's eight regional carbon markets in different periods. Results show that compared to phase 1, smaller price volatility, larger daily trading volume, and higher market liquidity are more frequent at the later stages of majority markets. Despite these improvements, results from the VR tests indicate that the statistic in majority of China's regional carbon markets is insignificant in any given period and, therefore, they are not weak-form efficient. The additional detrended cross-correlation analysis demonstrates that market liquidity affects market efficiency in the Hubei market only, which implies that Hubei, where the market liquidity reaches almost 100% in phase 3, is highly likely to be weak-form efficient shortly. Finally, several recommendations are provided to improve the efficiency and maturity of China's carbon markets, including strengthening legislation, improving the market design, and constructing information platforms. [ABSTRACT FROM AUTHOR]

Emission trading scheme (ETS), the most popular market-based instrument, is widely used to solve carbon emission problems in the world. With the development of carbon market, carbon asset has been a popular financial product to invest and the risk management becomes important for government, regulated enterprises and other investors. As carbon prices have tail characteristics, this paper explores the extremal risks between carbon markets in US, Europe and China using tail dependence correlation coefficients. The empirical analysis demonstrates the tail dependence structure between carbon markets in US. and Europe is the same sign, which indicates that it is unwise to hold these two carbon assets as a portfolio. Moreover, the co-movements between European Union Emission Trade Scheme (EU ETS) and China's carbon markets are partly significant, and the operation mechanisms in China should be improved. In addition, the tail dependence test among the carbon pilots in China shows diversity. Hubei carbon trading pilot, located in central China, has extremal dependence with all other selected pilots for its regulatory program operation. The findings give insight to the carbon market regulars to improve the operation mechanism and are also useful for the investors to manage their portfolios, policymakers to make practically applicable regulations, and relevant organizations to develop procedures. [ABSTRACT FROM AUTHOR]

The forecasting of carbon emissions trading market price is the basis for improving risk management in the carbon trading market and strengthening the enthusiasm of market participants. This paper will apply machine learning methods to forecast the price of China's carbon trading market. First, the daily average transaction prices of the carbon trading market in Hubei and Shenzhen are collected, and these data are preprocessed by PCAF approach to choose the input variables. Second, a prediction model based on Radical Basis Function (RBF) neural network is established and the parameters of the neural network are optimized by Particle Swarm Optimization (PSO). Finally, the PSO-RBF model is validated by the actual data and proved that the PSO-RBF model has better prediction effect than BP and RBF neural network in China's carbon prices prediction. It is indicated that the prediction model has more significant applicability and deserves further popularization. [ABSTRACT FROM AUTHOR]

Carbon emission reduction is now a global issue, and the prediction of carbon trading market prices is an important means of reducing emissions. This paper innovatively proposes a second decomposition carbon price prediction model based on the nuclear extreme learning machine optimized by the Sparrow search algorithm and considers the structural and nonstructural influencing factors in the model. Firstly, empirical mode decomposition (EMD) is used to decompose the carbon price data and variational mode decomposition (VMD) is used to decompose Intrinsic Mode Function 1 (IMF1), and the decomposition of carbon prices is used as part of the input of the prediction model. Then, a maximum correlation minimum redundancy algorithm (mRMR) is used to preprocess the structural and nonstructural factors as another part of the input of the prediction model. After the Sparrow search algorithm (SSA) optimizes the relevant parameters of Extreme Learning Machine with Kernel (KELM), the model is used for prediction. Finally, in the empirical study, this paper selects two typical carbon trading markets in China for analysis. In the Guangdong and Hubei markets, the EMD-VMD-SSA-KELM model is superior to other models. It shows that this model has good robustness and validity. [ABSTRACT FROM AUTHOR]

Environmental degradation and climate change are two important issues that threaten human survival and sustainable social development. Based on the characteristics of the same source of sulfur dioxide and greenhouse gases, we analyze the collaborative governance mechanism of carbon emission trading on sulfur dioxide. The results show that carbon emission reduction trading may not necessarily deliver sulfur dioxide reduction co-benefits. Then, we conduct an empirical using data of 30 regions in China from 1998 to 2017. The results show that the co-benefits of carbon emission trading in terms of the reduction of sulfur dioxide are regionally heterogeneous. The carbon emission trading policies implemented in Beijing, Chongqing, Hubei, and Guangdong have realized collaborative governance on sulfur dioxide. However, the carbon emission trading policies implemented in Tianjin and Shanghai have not realized collaborative governance on sulfur dioxide. Moreover, Chongqing has the highest average annual sulfur dioxide reduction co-benefits, followed by Guangdong. The gap of sulfur dioxide reduction co-benefits between Beijing and Hubei's synergistic emission reduction effect is small. Moreover, the sulfur dioxide reduction co-benefits of carbon emission trading are mainly achieved by reducing fossil energy consumption. Meanwhile, the carbon emission trading implemented in Beijing also delivers sulfur dioxide reduction co-benefits by improving pollution reduction technology. [ABSTRACT FROM AUTHOR]

This paper studies the carbon price fluctuation in China through the adaptive Fourier decomposition (AFD). Apart from the transient time-frequency distribution of the original AFD model, we also reconstruct the mono-components of this model to obtain the components in different time-frequency scales. Our empirical results based on the carbon price in Hubei Province demonstrate that there are three periods when the price fluctuates dramatically, mainly affected by the governmental policies about carbon emission and the development of clean energies, as well as the outbreak of COVID-19. Furthermore, the fluctuations of the price in the three identified periods are reflected in different scales. The comparison of the decomposition results and those of EMD and VMD shows that the AFD performs best in absorbing the price's useful information extracted through all these methods. [ABSTRACT FROM AUTHOR]

Global warming is caused by rising carbon dioxide concentrations, while ecological and environmental issues are becoming increasingly evident. Many governments' main objective in addressing climate challenges is to achieve carbon balance. Exploring the distribution and changing trends of carbon balance can contribute to carbon balance strategies. This study takes the Yangtze River Economic Belt (YREB) as the study area, analyzing the spatial and temporal dynamic changes in carbon emissions and carbon sequestration in the YREB from 2000 to 2017. The county-level supply–demand ratios and accessibility are calculated based on the enhanced two-step floating catchment method according to the dynamic flow radius. According to our experimental results, carbon emissions can achieve different degrees of carbon balance according to the flow radius. After carbon emissions flow between counties within the province, some provinces can realize the transition from carbon surplus to carbon balance. With the expansion of the flow radius and the increase in internal mobility, more counties can participate in carbon sequestration, and some provinces can achieve carbon neutrality after carbon emissions transfer across provinces. Hubei, Chongqing, Zhejiang, Hunan and other provinces with special carbon sequestration capacity are very sensitive to changes in the radius of carbon emission flow. In 2017, when the carbon emission flow radius is 50 km, the net carbon emission of the flow can be reduced by 3%. If the radius is increased to 200 km, the YREB can achieve carbon balance. This study can provide decision-making information for carbon emission ecosystem management in the YREB. [ABSTRACT FROM AUTHOR]

This paper analyzes the overall and time-varying efficiency of China's carbon market, which is crucial for carbon risk management and policymaking. Due to the severe illiquidity problems other pilots face, we first select Shenzhen, Guangdong, and Hubei pilots out of the eight carbon pilots for our study based on the statistical analysis. We then test the overall efficiency of the markets using the LM, CD, and Wild-Bootstrap variance ratio test. The sliding window method is combined with the above three variance ratio test methods to validate the time-varying efficiency. The results prove that the overall efficiency of the three carbon pilots has not yet reached a weak form. And we observe that the short-term efficiency is time-varying and may be weak-form. The study further found Hubei to be the most efficient carbon pilot, followed by Guangdong and Shenzhen. Finally, this paper conducts a qualitative analysis on the low efficiency from five aspects namely carbon trading rules, market liquidity, price volatility, trading volume, and types of trading products. Several conclusions and recommendations are proposed for policymakers and investors. • Sliding window method is combined with a series of variance ratio test methods. • The overall and time-varying efficiency of China's carbon market is tested. • China's carbon market has not reached weak-form efficiency. • Hubei is the most efficient carbon pilot. • Reasons for low efficiency are analyzed. [ABSTRACT FROM AUTHOR]

With the continuous emission of greenhouse gases, the carbon trading market has become a powerful weapon to contain it. It is indispensable to analyze the carbon price of China that acts as the largest emitter of carbon dioxide worldwide. Therefore, this paper proposes an innovative hybrid carbon price forecasting model that incorporates fast ensemble empirical mode decomposition (FEEMD) and extreme learning machine optimized by particle swarm optimization (PSO-ELM) with external and internal influencing factors considered. The original carbon price series are disassembled into several intrinsic mode functions (IMFs) and one residual via FEEMD. The PSO-ELM is then employed to forecast the sub-series. It's remarkable that the inputs of the PSO-ELM model are divided into external and internal influencing factors. Factor analysis is used to extract potential factors from energy prices, macroeconomics and other influencing factors associated with the original carbon price as external influencing factors, and the partial autocorrelation function (PACF) is exploited to select internal influencing factors. A case study in Hubei Province, China shows that the proposed carbon price forecasting model is superior to the contrast models in terms of the smallest prediction error (MAE = 0.1274 yuan, MAPE = 0.8368%) and the strongest stability (RMSE = 0.0116 yuan). And the forecasting results demonstrate that the developed model with external and internal influencing factors considered can highly improve carbon price prediction performance and have potential in a wider range of carbon price forecasting. In addition, accurate carbon price forecasting can help the government realize macro control and the investors fulfill risk minimization. [ABSTRACT FROM AUTHOR]

• Using subsidies and carbon trading jointly is more effective than their sole use. • A proper carbon quota is vital for firms to obey emission reduction constraints. • The subsidy limits for carbon emission reduction is significant on its reduction. • The subsidy rate can adjust the total carbon emissions and emission reduction. With the increasing demand for low-carbon cold chain logistics, corresponding subsidy policy and carbon emissions trading policy are needed to guide cold chain logistics enterprises in energy-saving and emission reduction transformation of cold storage. However, current research mainly focuses on energy-saving and emission reduction through improving the energy efficiency of equipment or optimizing the operation and management of cold chain logistics enterprises, rarely considering the government policy. This paper constructs a decision-making model of cold chain logistics system by using the method of bilevel programming. The upper level is the government's goal, pursuing the total cost minimization of the whole cold chain logistics system. The lower level is the goal of the cold chain logistics enterprise, pursuing the cost minimization of the enterprise. Chaotic particle swarm optimization (CPSO) was developed to improve this model, and this method was applied to the decision-making of cold chain logistics system in Wuhan City, Hubei Province, China. The study reveals: (1) The joint use of carbon emission reduction subsidies and carbon emission quota optimization measures is more effective in promoting energy-saving and emission reduction of enterprises than using them separately; (2) The carbon emission quota set by the government should not be too high or too low; (3) The government subsidy limits for carbon emission reduction have a significant impact on the carbon emission reduction of enterprises; (4) The subsidy rate per unit carbon emission reduction can adjust the total carbon emissions and total carbon emission reduction of enterprises. This study provides a scientific basis and inspires the government and enterprise in decision-making to improve the energy-saving and emission reduction of the whole society. [ABSTRACT FROM AUTHOR]

Carbon peaking and carbon neutrality goals are proposed by the Chinese government, which aims to reach the highest level of CO 2 emissions by 2030 and achieve carbon neutrality by 2060. It is of great significance to accelerate green production and lead high-quality development. Energy carbon emissions account for 88% of total CO 2 emissions, while forest carbon sequestration account for 80% of China's terrestrial ecosystems. In this paper, we analyzed the spatial and temporal evolutions of industrial energy consumption carbon emissions and forest carbon sequestration of Hubei Province, then demonstrated the offsetting effect of forest carbon sequestration on the industrial CO 2 emissions. Our results documented energy carbon emissions and forest carbon sequestration in Hubei Province both increased from 2000 to 2020, with the growth rates of 4.9423 Mt/yr and 0.28015 Mt/yr. Forest carbon sequestration could offset energy carbon emissions before 2005, while the offsetting effect was weak due to the continuous increase in industrial energy consumption after 2005. Significant spatial heterogeneity was observed in both energy carbon emissions and forest carbon sequestration. Wuhan had the biggest carbon emission with annual average carbon emission of about 20.046 Mt, while Enshi had the biggest carbon sequestration with annual average forest carbon sequestration of about 14.411 Mt. Spatial autocorrelation between energy carbon emissions and forest carbon sequestration was significant in Hubei Province in the past two decades. Our findings provided evidence that local-scale forest carbon sequestration could offset carbon emissions caused by industrial energy consumption at a certain extent, helping to draw up the scientific energy-saving and emissions-reducing measures. [Display omitted] [ABSTRACT FROM AUTHOR]

Although China boasts the largest online consumption market, there has been no prior case study addressing the carbon footprint of online consumption. The rapid expansion of online consumption has posed a challenge to China's carbon neutrality pledge. This paper aims to fill this crucial gap by conducting a pioneering study based on survey data collected from 6000 households. To achieve this goal, this study has combined provincial Multi-Regional Input-Output (MRIO) tables with residents' online consumption calculated by the Non-Linear Optimization model, and applied the Environmental Input-Output Life Cycle Assessment (EIO-LCA) model to calculate the carbon footprint of residents' online consumption. Result indicated that the average carbon footprint of residents' online consumption was 0.46 tCO 2 e in 2016, accounting for 12.30% of the total consumption carbon footprint. Notably, high-emission regions include Beijing-Tianjin, Jiangsu-Zhejiang-Shanghai, and Hubei. Moreover, the dominant sources of the online consumption carbon footprint were electricity, food, clothing, and beauty products. Furthermore, we found that the carbon footprint of online consumption tends to increase with income, with differential income elasticities observed for various products and income groups. We also quantified the average expenditure-based life-cycle carbon coefficient for parcel delivery (0.22 kgCO 2 e/yuan) and conducted two scenario analyses to assess its impact. From a policy perspective, our research on measuring the carbon footprint of residents' online consumption can provide valuable insights for designing future policies and decisions related to e-commerce and key sectors along the supply chains. Additionally, it will further encourage Chinese residents to adopt low-carbon lifestyles. • Identifies the expenditure structure of residents' online consumption. • The carbon footprint of Chinese residents' online consumption in 25 regions. • The income elasticity of online consumption carbon footprint. • The last mile emission intensity of e-commerce is quantified. [ABSTRACT FROM AUTHOR]

In today's environmentally conscious world, carbon trading has emerged as a widely accepted economic instrument to mitigate the externalities resulting from deteriorating environmental problems. Consequently, the use of market-based mechanisms to address environmental issues has reached a global consensus. Many countries are implementing progressive steps by establishing carbon markets to promote low-carbon development and meet their carbon reduction targets. However, the inherent risks in carbon trading markets may hamper the formation of a reasonable carbon price signal, leading to inadequate stimulation of low-carbon technology investments and potential failure to achieve national emission reduction goals. Therefore, managing the risks associated with carbon trading markets is crucial. This study focuses on measuring the risk of China's carbon market, with the primary aim of exploring carbon price fluctuation patterns and precisely measuring market risks. The risks associated with China's carbon market are quantified and analyzed using the exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model, extreme value theory (EVT), and the value at risk (VaR) method. Results show that (1) the effect of external shocks on each carbon market is asymmetrical, and positive shocks exert considerable leverage effects on carbon price fluctuations. (2) EVT can be used to effectively fit the risks in the carbon markets. The risks of each carbon market show different characteristics. The risk of Hubei and Guangdong carbon markets is relatively small, and the dynamic VaR is nearly ±0.2. (3) Compared with the performance of the Chinese carbon market, the performance of the European Union Emission Trading Scheme is more stable, and its dynamic VaR for most of the period is within ±0.1, which is considerably lower than the VaR of other Chinese carbon markets. This study also proposes suitable policy implications to ensure the healthy and sustainable development of China's carbon market. [ABSTRACT FROM AUTHOR]

Accurate carbon price projections can serve as valuable investment guides and risk warnings for carbon trading participants. However, the escalation of uncertain factors has brought numerous new hurdles to existing carbon price forecast methods. In this paper, we develop a novel probabilistic forecast model called quantile temporal convolutional network (QTCN) that can precisely describe the uncertain fluctuation of carbon prices. We also investigate the impact of external factors on carbon market prices, including energy prices, economic status, international carbon markets, environmental conditions, public concerns, and especially uncertain factors. Taking China's Hubei carbon emissions exchange as a study case, we verify that our QTCN outperforms other classical benchmark models in terms of prediction errors and actual trading returns. Our findings suggest that coal prices and EU carbon prices have the most significant effect on Hubei carbon price forecasting, while air quality index appears to be the least important. Besides, we demonstrate the great contribution of geopolitical risk and economic policy uncertainty to carbon price projections. The effect of these uncertainties is more pronounced when the carbon price is at a high quantile level. This research can offer valuable guidelines for carbon market risk management and provide new insight into carbon price formation mechanisms in the era of global conflict. • We propose a novel probability forecast model QTCN for carbon prices. • The impact of economic policy uncertainty and geopolitical risks are considered. • The prediction accuracy of QTCN outperforms other competing models. • QTCN-based trading strategies yield higher profits than a point forecast-based one. [ABSTRACT FROM AUTHOR]

Carbon trading is an effective way to limit global carbon dioxide emissions. The carbon pricing mechanisms play an essential role in the decision of the market participants and policymakers. This study proposes a carbon price prediction model, multi-decomposition-XGBOOST, which is based on sample entropy and a new multiple decomposition algorithm. The main steps of the proposed model are as follows: (1) decompose the price series into multiple intrinsic mode functions (IMFs) by using complete ensemble empirical mode decomposition with adaptive noise (CEEMDAN); (2) decompose the IMF with the highest sample entropy by variational mode decomposition (VMD); (3) select and recombine some IMFs based on their sample entropy, and then perform another round of decomposition via CEEMDAN; (4) predict IMFs by XGBoost model and sum up the prediction results. The model has exhibited reliable predictive performance in both the highly fluctuating Beijing carbon market and the comparatively stable Hubei carbon market. The proposed model in Beijing carbon market achieves improvements of 30.437%, 44.543%, and 42.895% in RMSE, MAE, and MAPE, when compared to the single XGBoost models. Similarly, in Hubei carbon market, the RMSE, MAE, and MAPE based on multi-decomposition-XGBOOST model decreased by 28.504%, 39.356%, and 39.394%. The findings indicate that the proposed model has better predictive performance for both volatile and stable carbon prices. [ABSTRACT FROM AUTHOR]

Emission Trading Scheme (ETS) is one of the most important instruments introduced to meet carbon neutral targets internationally. To reduce carbon emissions, China has established eight regional ETS since 2013 to reduce carbon emissions. However, significant heterogeneities exist across the eight pilots, resulting in distinctively different carbon price movements. Traded as a financial asset, carbon allowance is vulnerable to internal and external shocks. Though carbon prices have been fluctuating fiercely since the inception of the carbon market, little is known about potential carbon price bubbles in any of these pilots. To this end, this paper resorts to the generalized sup Augmented Dickey-Fuller (GSADF) test, which allows the detection of multiple bubbles, as well as the date stamping of bubbles in carbon prices. For the first time, price bubbles are found in the Chinese carbon markets. The empirical results find three bubbles in Guangdong pilot, two bubbles in Tianjin pilot, and one bubble in Hubei pilot. These explosive episodes are closely related to immature market mechanisms and policy implementations. The results provide insightful implications for the upcoming unified national carbon market. • This paper detects the carbon price bubbles in Chinese markets. • Multiple bubbles exist in different pilots. • Not all pilots encounter bubbles. [ABSTRACT FROM AUTHOR]

Carbon price fluctuations significantly impact the development of industries, energy, agriculture, and stock investments. The carbon price possesses the features of nonlinearity, non-stationarity, and high complexity as a time series. To overcome the negative impact of these characteristics on prediction and to improve the prediction accuracy of carbon price series, a combination prediction model named Lp-CNN-LSTM, which utilizes both convolutional neural networks and long short-term memory networks, has been proposed. Strategy one involved establishing distinct models of CNN-LSTM and LSTM to analyze high-frequency and low-frequency carbon price sequences; the combination of output was integrated to predict carbon prices more precisely. Strategy two comprehensively considered the economic and technical indicators of carbon price sequences based on the Pearson correlation coefficient, while the Multi-CNN-LSTM model selected explanatory variables that strongly correlated with carbon prices. Finally, a predictive model for a combination of carbon prices was developed using Lp-norm. The empirical study focused on China's major carbon markets, including Hubei, Guangdong, and Shanghai. According to the error indicators, the performance of the Lp-CNN-LSTM model was superior to individual strategy prediction models. The Lp-CNN-LSTM model has excellent accuracy, superiority, and robustness in predicting carbon prices, which can provide a necessary basis for revising carbon pricing strategies, regulating carbon trading markets, and making investment decisions. [ABSTRACT FROM AUTHOR]

Carbon trading has been deemed as the most effective mechanism to mitigate carbon emissions. However, during carbon trading market operation, competition among market participants will inevitably occur; hence, the precise forecasting of the carbon trading price (CTP) has become a significant element in the formulation of competition strategies. This investigation has established a hybrid CTP forecasting framework combining complete ensemble empirical mode decomposition with adaptive noise (CEEMDAN), sample entropy (SE) method, improved salp swarm algorithm (ISSA), and multi-kernel extreme learning machine (MKELM) methods to improve forecasting accuracy. Firstly, the initial CTP data sequence is disintegrated into several intrinsic mode functions (IMFs) and a residual sequence by a CEEMDAN method. Secondly, to save calculation time, SE method has been utilized to reconstruct the IMFs and the residual sequence into new IMFs. Thirdly, the new IMFs are fed into the MKELM model, combing RBF and the poly kernel functions to utilize their superior learning and generalization abilities. The parameters of the MKELM model are optimized by ISSA, combining dynamic inertia weight and chaotic local searching method into the SSA to enhance the searching speed, convergence precision, as well as the global searching ability. CTP data in Guangdong, Shanghai, and Hubei are selected to prove the validity of the established CEEMDAN-SE-ISSA-MKELM model. Through a comparison analysis, the established CEEMDAN-SE-ISSA-MKELM model performs the best with the smallest MAPE and RMSE values and the highest R2 value, which are 0.76%, 0.53, and 0.99, respectively, for Guangdong,. Thus, the presented model would be extensively applied in CTP forecasting in the future. [ABSTRACT FROM AUTHOR]

The Forest Resources Assets Departure Audit (FRADA) is an important measure for the Chinese government to protect and develop forest resources, as well as to promote carbon peaking and carbon neutrality. Explicit audit content and scientific audit method are the basic premises for conducting an accurate audit. In this study, landscape ecology methods were employed to learn the spatiotemporal properties of forest resources, with the support of spatial information technology such as Geography Information System (GIS) and Remote Sensing (RS). A FRADA system from the perspective of landscape pattern index and ecological vulnerability was constructed. A case study was conducted for the evaluation of the proposed FRADA System. Lichuan, a county-level city in Hubei Province, China that is rich in forest resources was selected as the audit sample area, and the tenure period from 2015 to 2019 was regarded as the tenure cycle. The results showed that: (1) Before and after the tenure cycle, the number of patches (NP), patch density (PD) and largest patch index (LPI) of forest landscape showed a downward trend. Meanwhile, the decreased quantity and quality of forest landscapes showed inadequate protection of large forest patches with significant ecological value. In general, it was not beneficial for the sustainable development of forest resources in the view of ecology. (2) The landscape shape index (LSI) and connectivity index (CONNECT) showed an upward trend, which indicates that the shape of the forest landscape is changing in a complex way, and the connectivity has been improved. While, fractal dimension (FD) and fragmentation index (FN) showed a downward trend, indicating that the fragmentation trend of the forest landscape has been alleviated and the forest resources have a continuous and concentrated distribution. (3) The vulnerability of the forest landscape was significantly aggravated. Regarding administrative areas under the jurisdictions of Nanping Township, Jiannan Town and Fobaoshan Development Zone were particularly disturbed, and required special attention. The research results enrich and develop the theories and methods of FRADA and provide suggestions for the sustainable development of forest resources in Lichuan. [ABSTRACT FROM AUTHOR]

This paper examines the risk spillover effect between the carbon market and the stock market in China and the role of corporate social responsibility (CSR) on this effect. Employing Beijing, Hubei, and Guangdong carbon markets, we apply time-domain and frequency-domain spillover approaches and find that during the Chinese stock market crisis in 2015, risk spillovers from the stock market to the carbon market were more pronounced. Additionally, CSR firms are more dominant as information transmitters than those non-CSR (NCSR) firms in the carbon market. However, plausibly, due to the infancy of carbon trading, our results show that the level of connectedness between the carbon market and the stock market in China is relatively low. [ABSTRACT FROM AUTHOR]

• It evaluates the effect of China's ETS on non-fossil energy development. • It analyzes ETS's effects from energy type, pilot, and pilot-energy type aspects. • The ETS has the most significant promoting effect on hydropower and photovoltaics. • Carbon price plays a positive role in moderating the effect of China's ETS. Emissions Trading Scheme (ETS) can internalize the environmental costs of fossil energy consumption and encourage enterprises to consume non-fossil energy, which is crucial for People's Republic of China (PRC) to achieve the contribution target of the Paris Agreement cost-effectively. However, whether the ETS in PRC can promote non-fossil energy development remains to be answered. This paper uses a difference-in-differences model to evaluate the effect of the ETS on non-fossil energy development in PRC. Using provincial monthly panel data from January 2004 to December 2019, we find that (1) the ETS has significantly promoted non-fossil energy development in PRC, increasing the monthly average share of non-fossil energy power generation in total power generation by 2.326 percentage points, which has been verified by a series of robustness tests. (2) The effect of the ETS on non-fossil energy development is heterogeneous by energy type, pilot region, and pilot-energy type. The ETS has significantly increased the share of hydropower and photovoltaic power generation, and has significantly promoted non-fossil energy development in Guangdong; meanwhile, the ETS has significantly increased the share of hydropower and nuclear power in Guangdong, and the share of wind power and photovoltaic power in Hubei. (3) The higher the carbon price, the greater the role of the ETS in promoting non fossil energy development. [ABSTRACT FROM AUTHOR]

In 2020, China proposed the goal of achieving carbon emission peaks by 2030 and carbon neutrality by 2060. For China, whose energy consumption structure has long been dominated by fossil energy, carbon trading and new energy are crucial for the realization of the emission target. By establishing a connectedness network model, this paper studies the static and dynamic spillovers between the Hubei carbon trading market, new energy stock market, crude oil market, coal market, and natural gas market in China, and draws the following conclusions: (1) the static spillover index of the carbon–energy–stock system is 3.57% and the dynamic spillover index fluctuates between 7.67% and 22.62%, indicating that the spillover effect of the system is low; (2) for the whole system, whether from a static or dynamic perspective, the carbon market always plays the role of net information receiver, while new energy is the net information transmitter; (3) the new energy stock market and the coal market always act as net information transmitters to the carbon market; and (4) the spillover effect of the system is asymmetric, wherein the system is more sensitive to negative information about price returns, and this asymmetry is much greater when the system is active. [ABSTRACT FROM AUTHOR]

China launched seven emissions trading scheme (ETS) pilots in 2011, and a national ETS, at the end of 2017 in an attempt to reduce its greenhouse gas emissions (GHGs) and drive its extensive energy transition in a cost-effective way. The Hubei province pilot ETS has operated since 2014, and an analysis of its effectiveness can provide lessons for the nascent national system. This paper disaggregates Hubei's industrial carbon dioxide (CO 2) emissions from 2005 to 2018 into economic scale, economic structure, energy efficiency, and energy structure effects using the logarithmic mean Divisia index (LMDI). Difference-in-difference (DID) models then assess the implementation effectiveness of this ETS, and its impact on the main influencing factors of the LMDI. Ten cities each in the Hubei and Hunan provinces are selected as treatment and control groups, respectively, in the DID models. Results show that the change in industrial CO 2 emissions is mainly due to the economic scale and energy efficiency effects. After the ETS implementation, the energy structure effect has a limited impact on emissions, while the economic structure effect makes a negligible contribution. Moreover, the implementation of the ETS has had little demonstrable impact on industrial CO 2 emissions, gross domestic product (GDP), energy consumption intensity, and CO 2 emission intensity. This lacking of impact is caused by the GHG monitoring capacity deficits of the local Development and Reform Commission, and irrational quota allocations. Effective supervision and quota allocation should be developed to increase the impacts of the ETS. [ABSTRACT FROM AUTHOR]

China is the world's largest developing country and a carbon dioxide emitter. A functional carbon market can effectively reduce carbon emissions. This paper uses the Markov chain Monte Carlo-stochastic volatility model and the wavelet multi-resolution model to analyze the volatility of price returns and the dynamic characteristics of price fluctuations in the carbon pilot markets in Hubei, Shanghai, and Shenzhen. The price movements in these markets are compared to the emissions trading system of the European Union (EU-ETS). The results show that there is a volatility clustering in the price of carbon trading in Hubei, Shanghai, Shenzhen and the EU-ETS. China's carbon pilot markets have a deficiency in terms of volatility stability, as does the EU-ETS. From a long-term perspective, China's carbon market lacks a detailed development plan, which is vital because the construction of the market system is not yet optimal. From a short-term view, China's carbon market is not active and the participants' attitude toward risk is extremely sensitive. • MCMC-SV and wavelet multi-resolution model applied to carbon price volatility. • Three major Chinese markets are compared to the EU-ETS. • All markets evidence volatility clustering. • China's carbon market lacks a detailed development plan for the long term. • Short-term, China's carbon market must become more active and offer more products. [ABSTRACT FROM AUTHOR]

As an economic means to cope with climate change, carbon trading has become an important measure to reduce carbon emissions in China. It has been over seven years since the initiation of seven pilot carbon markets, but has the implementation achieved the goal of controlling carbon emissions in the region? Are the effects really resulted from the carbon market other than other energy-saving and emission reduction policies? Based on the provincial panel data of China from 2005 to 2016 this paper conducts an empirical study on the emission reduction effects of pilot projects using the Difference-in-differences model (DID). The results show that: (1) The implementation of carbon markets in Beijing, Shanghai and Hubei exhibited a significant inhibitory effect on local carbon emissions, but a promoting effect in Guangdong, and no significant effect was found in Tianjin; (2) In terms of time lag effect, no significant inhibiting effect on the local carbon emissions is found during the first year of opening of Shanghai carbon market but the effect grew significantly from 2015 to 2016; while for Hubei and Beijing, significant effect was shown from the first year of running. Being an experimental program to see whether the carbon trading policy would work in China or not and if it does, under what conditions and settings the policy becomes effective, the 7 pilot markets provide important experiences and lessons to the upcoming nationwide market in China. Based on the empirical result that the carbon trading system in Beijing, Shanghai and Hubei effectively reduced carbon emissions, it is suggested that the national carbon market should actively learn from the experiences of these three pilot markets particularly. [ABSTRACT FROM AUTHOR]

By studying five carbon emission exchanges (Beijing, Shanghai, Shenzhen, Guangdong, and Hubei) within China, this study uses the GARCH model to explore the price volatility characteristics of regional carbon trading markets and measures the trading market risks based on VaR model. The results show that the adopted GARCH (1,1) risk model fits well with the characteristics of returns. Besides, fluctuation shock varies among different exchanges, and the volatility of carbon price is influenced more by the heterogeneity of the external environment of the carbon market than the role of internal market mechanisms. The value-at-risk varies between exchanges. These findings pose more challenges to the risk monitoring of carbon finance markets. Therefore, the current work attempts to recommend the establishment of a unified national carbon trading market to control risks and maintain stable market development. [ABSTRACT FROM AUTHOR]