Analyzing the network structure of risk transmission among renewable, non-renewable energy and carbon markets. (June 2023)

• Record Type: Journal Article
• Authors: Qiao, Sen; Guo, Zi Xin; Tao, Zhang; Ren, Zheng Yu
• Is Part Of: Renewable energy. Volume 209(2023)
• Page Start: 206
• Page End: 217
• Publication Date: 2023-06
• Subjects: Time-varying spillover effects -- Network structure -- Risk transmission -- Diebold-yilmaz spillover index -- Network topology analysis; Renewable energy sources -- Periodicals; Power resources -- Periodicals; Énergies renouvelables -- Périodiques; Ressources énergétiques -- Périodiques; 333.794
• DOI: 10.1016/j.renene.2023.03.133
• Languages: English
• ISSNs: 0960-1481

Abstract

Abstract: The linkage of renewable, non-renewable energy and carbon markets is increasing, and there is a complex network structure for the risk transmission among multiple markets. Based on the methods of network topology analysis and DY spillover index, this paper analyzes the time-varying spillover effect and network structure of risk transmission among renewable, non-renewable energy and carbon markets. The results show that: according to the static spillover index, there are significant spillover effects among renewable, non-renewable energy and carbon markets, and they are asymmetric. Moreover, the total spillover index further shows that the spillover effect between energy and carbon markets is time-varying, especially during the extreme events. Specifically, the net spillover index shows that the spillover effects among renewable, non-renewable energy and carbon markets are bidirectional, asymmetric and time-varying. Additionally, under the influence of various extreme events, the spillover effect and network structure of risk transmission among renewable, non-renewable energy and carbon markets are heterogeneous. Compared with the shale oil revolution and the Sino-US trade dispute, the influence of COVID-19 is more significant and complex, and it is long-term and comprehensive. Finally, some policy implications for preventing risk transmission and optimizing the energy structure to promote emission reduction are put forward.