Climate Change Data Portal
| DOI | 10.1177/0958305X241246195 |
| Crude oil price volatility-An unintended consequence of carbon pricing: Evidence from transfer entropy and wavelet-partial wavelet coherence analyses | |
| 发表日期 | 2024 |
| ISSN | 0958-305X |
| EISSN | 2048-4070 |
| 英文摘要 | The urgent need to achieve the COP-27 targets has become evident due to the more frequent and severe climate-induced disasters and their socioeconomic consequences. The adverse effects of climate change highlight the need for an immediate shift away from fossil fuels without compromising economic development. Internalization of the negative externality in market transactions through the imposition of carbon pricing is widely touted as the most economically efficient means of solving this problem. This study, however, argues that crude oil price volatility could be an unintended consequence of carbon pricing. To this end, information flows between the European Union Emissions Trading Scheme and crude oil price volatility are examined through transfer entropy and wavelet-partial wavelet coherence analyses. Daily data from January 1, 2014 to July 1, 2023 are analyzed. The transfer entropy results show that information on carbon pricing reduces uncertainty about crude oil price volatility and vice versa, indicating that carbon pricing would be quite informative in building models to predict crude oil price volatility. The wavelet-partial coherence analyses reveal that the surge in carbon prices experienced in the late 2010s induced crude oil volatility, whereas the crude oil price volatility triggered by the COVID-19 pandemic forced carbon prices down. This study therefore identifies carbon price movements as a legitimate fear for policymakers, as it is a new source of volatility in conventional energy markets. Caution should thus be the watchword regarding optimal carbon pricing. Aiming to rapidly attain the full optimal carbon price is not recommended. Rapid changes in carbon prices will have strong redistributive implications across economies. |
| 英文关键词 | Carbon pricing; climate change; crude price volatility; EU-ETS; transfer entropy; wavelet coherence analysis |
| 语种 | 英语 |
| WOS研究方向 | Environmental Sciences & Ecology |
| WOS类目 | Environmental Studies |
| WOS记录号 | WOS:001204065000001 |
| 来源期刊 | ENERGY & ENVIRONMENT
 |
| 文献类型 | 期刊论文 |
| 条目标识符 | http://gcip.llas.ac.cn/handle/2XKMVOVA/290062 |
| 作者单位 | Istanbul Ticaret University; Ministry of Education of Azerbaijan Republic; Azerbaijan State University of Economics (UNEC) |
| 推荐引用方式 GB/T 7714 | . Crude oil price volatility-An unintended consequence of carbon pricing: Evidence from transfer entropy and wavelet-partial wavelet coherence analyses[J],2024. |
| APA | (2024).Crude oil price volatility-An unintended consequence of carbon pricing: Evidence from transfer entropy and wavelet-partial wavelet coherence analyses.ENERGY & ENVIRONMENT. |
| MLA | "Crude oil price volatility-An unintended consequence of carbon pricing: Evidence from transfer entropy and wavelet-partial wavelet coherence analyses".ENERGY & ENVIRONMENT (2024). |
| 条目包含的文件 | 条目无相关文件。 | |||||
| 个性服务 |
| 推荐该条目 |
| 保存到收藏夹 |
| 导出为Endnote文件 |
| 谷歌学术 |
| 谷歌学术中相似的文章 |
| 百度学术 |
| 百度学术中相似的文章 |
| 必应学术 |
| 必应学术中相似的文章 |
| 相关权益政策 |
| 暂无数据 |
| 收藏/分享 |
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
