PhD student Yan Wanlin from the Faculty of Finance of the City University of Macau and Prof Adrian Cheung of the academic unit recently published their paper titled The Dynamic Spillover Effects of Climate Policy Uncertainty and Coal Price on Carbon Price: Evidence from China in the Finance Research Letters, one of the most prestigious journals in the field.
Student Yan (first author) and Prof Adrian Cheung Wai Kong of (corresponding author) co-authored the paper. The study investigated the dynamic effects of climate policy uncertainty and coal price on the carbon price in China. The research paper applied data analysis and different models to construct the climate policy uncertainty index. The full version is now available online. Click here to review.
To address climate change, China continues exploring sustainable mechanisms for carbon emission reduction and plans to establish carbon emissions trading market. As the primary energy source in China, coal price and climate policy are crucial factors in determining the cost of the carbon price. Based on the existing literature, the impact of climate policy uncertainty on the time-varying carbon price and the effects of climate policy uncertainty and coal prices on the time-varying carbon price have not yet been answered. This study constructed a tailor-made climate policy uncertainty index based on news from China's mainstream newspapers and websites. The research revealed the effects of the climate policy uncertainty and coal price on the carbon price. Additional analysis reveals that coal price is the main shock transmitter, while climate policy uncertainty and carbon price are mostly net shock receivers.
Finance Research Letters is one of the leading journals in finance. The impact factor of this international journal was 9.848 in 2021, which ranked in the first quartile (Q1) in the Journal Citation Reports (JCR). With its high impact factor, Finance Research Letters was ranked first in the field of Business and finance.
The City University of Macau (CityU) shoulders its social responsibility and embeds “serving Macao and integrating into the Greater Bay Area” into its missions and ethos. The Greater Bay Area promotes integrated development among the higher education sections. Guided by its motto of “Virtue, Knowledge, Practice,” CityU will continue cultivating professionals and carrying out interdisciplinary studies to serve the development.