The price fluctuation in Chinese carbon emission trading market: New evidence from adaptive Fourier decomposition

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...

Full description

Saved in:
Bibliographic Details
Published in:Procedia computer science 2022-01, Vol.199, p.1095-1102
Main Authors: Li, Jingyu, Liu, Ranran, Xie, Qiwei
Format: Article
Language:English
Subjects:
adaptive Fourier decomposition
Carbon price
time-frequency domain
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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.
ISSN:1877-0509
1877-0509
DOI:10.1016/j.procs.2022.01.139