Based on the trading data of the Bluenext and the
European Climate Exchange (ECX), this paper analyzes the cyclic price
fluctuations of the EU carbon emission rights by means of the maximum entropy
spectrum and wavelet variance. The results
show that: 1) there are obvious cyclical price fluctuations in the EU carbon
trading market, with the longest cycle being 33 months and the shortest
5.7; 2)researcheson the factors that affect
the cyclical price fluctuations of carbon emission rights manifest that power
prices (POWER)exert the
greatest implication on the prices of carbon emission rights, followed by coal
prices (COAL). For every 1% change in POWER, theprice of carbon emission rights changes 10.95%
towards the same direction. Forevery 1%
change in COAL, the price of carbon emissions changes 9.28% towards the
opposite; 3) research based on variance decomposition demonstrates that
electricity prices contribute the most to the changes of the price of carbon
emissions, and the variance contribution rate is 13% at a lag cycle of 30 days.
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