Search

This paper examines the effect of environmental regulations on energy poverty and analyses whether clean energy access, the access to modern energy services, is an important channel through which environmental regulations affect energy poverty in China. Using household-level survey data in China from 2012 to 2018, we find that enacting tightened environmental regulations leads to greater affordability problems for households using non-clean energy and deepens the degree of their energy poverty. Furthermore, we show that capable or sufficient access to clean energy enables households to obtain clean energy at a lower price, thus reducing the adverse effect of environmental regulations on household energy poverty. Our results have important implications for environmental and energy policy makers. • The impact of environmental regulations on household energy poverty is examined. • Tightened environmental regulations in China deepen household energy poverty. • Access to clean energy alleviates this adverse effect of environmental regulations. • Important implications for policymakers are provided to promote the policy synergy. [ABSTRACT FROM AUTHOR]

• The paper studies the impact of CPU on correlations between high- and low-carbon assets. • A DCC-MIDAS-CPU model is proposed to capture the effect of climate policy risk. • The climate policy risk negatively affects correlations between high- and low-carbon assets. • Hedging and optimal weight portfolios against the climate policy risk are constructed. • Low-carbon assets are effective tools to reduce the climate policy risk exposure of high-carbon assets. This paper modifies the traditional DCC-MIDAS model by incorporating the climate policy risk to examine its effect on the correlations between high- and low-carbon assets. Our results show that the climate policy risk has a negative effect on the long-term correlations between high- and low-carbon assets, although the extent of this effect varies across different asset categories. The results of portfolio performance analyses also show that when the climate policy risk is high, the effectiveness of low-carbon assets as a hedge of carbon-intensive assets decreases, while the performance of carbon-intensive portfolios diversified by low-carbon assets improves. [ABSTRACT FROM AUTHOR]

• This paper proposes an asymmetric DCC-MIDAS-EMV (Equity Market Volatility) model. • The asymmetric impacts of EMV on stock-bond and stock-gold correlations are examined. • The increase of EMV would decrease (increase) the stock-bond (stock-gold) correlation. • Bonds are overall a better hedge than gold for stock investors during market turmoil. This paper explores the impacts of stock market volatility on stock-bond and stock-gold correlations and compares the effectiveness of bonds with gold hedging the stock market risk. We propose an extensive DCC-MIDAS model, which takes the changes in stock market volatility as exogenously predetermined and accounts for its asymmetric impacts. The results show strong evidence that stock market volatility significantly and asymmetrically affects stock-bond and stock-gold correlations in different ways. Moreover, we prove that government bonds are more effective than gold in hedging stock return volatility, especially in the period of stock market turbulence. Our results suggest that government bonds are overall a better hedge for stock investors. [ABSTRACT FROM AUTHOR]