Search

This paper constructs a new risk evaluation index system for overseas energy investment, while considering the country's response ability to major risk events using COVID-19 as experience. The entropy weight method and the TOPSIS (Technique for Order Preference by Similarity to an Ideal Solution) method are used to conduct overall and sub-dimensional risk assessment for 52 countries. The results show that: (1) among the seven risk dimensions considered, the response ability to major risk events dimension has the highest weight, accounting for 16.47 %. This indicates that Chinese energy corporations cannot ignore the risk posed by major risk events, such as COVID-19, in their overseas investments. (2) Among the 52 countries investigated, investment risk is significantly lower in developed countries than in developing countries, mainly because of the better performance of the former across the four dimensions of economics foundation, governing ability, social development, and investment environment. (3) The COVID-19 pandemic has impacted the landscape of China's overseas energy investment risk. Due to the different performance of each country in other dimensions, the risk rankings of the majority of developing countries decreased when considering their COVID-19 response, while that of most developed countries increased. • Assesses the risk of China's overseas energy investments. • An overseas energy investment risk evaluation system considering the response ability to major risk events is constructed. • The response ability to major risk events impacts the landscape of China's overseas energy investment risk. • Investment risk is lower in developed countries than in developing countries. [ABSTRACT FROM AUTHOR]

COVID-19 brings new challenges to addressing climate change and achieving the goal of environmental sustainability. This paper examines how the COVID-19 pandemic affects transmission of returns spillovers among green finance, carbon market and renewable & non-renewable energy in China. We evaluate the dynamic and directional risk connectedness across time and at various frequency bands using Diebold and Yilmaz and Baruník and Křehlík approaches. First, the total spillover effects increase significantly when the COVID-19 outbreak. Second, the carbon price fluctuations are mainly influenced by non-renewable energy. Third, the spillover effect is mainly acted in the short term, meaning that it is strongly influenced by investor sentiment in the short term. Fourth, non-renewable energy and carbon markets are the main net recipients and can be used as hedge assets. Finally, the total spillover is time-varying that is affected by the unexpected crisis. The findings will help policymakers and environmental investors to develop policy measures and portfolios that are appropriate for different frequency domains. • Time-frequency connectedness among green finance, carbon and energy is tested. • Spillovers increase at the onset of the COVID-19 and mainly acted in the short-term. • The carbon price fluctuations are mainly influenced by non-renewable energy. • Non-renewable energy and carbon markets are the major net recipients. • The total spillover is time-varying affected by the unexpected crisis. [ABSTRACT FROM AUTHOR]

A better understanding of the carbon market can guide further reforms to improve its functionality. Market efficiency is a key indicator to uncover its current performance. Previous studies have revealed passed carbon market efficiency; however, given the dynamics of the market, it is worthy to track the up-to-date status. This paper, specifically, studies the Hubei pilot carbon market, which is quite interesting, considering its market scale, as well as the COVID-19 pandemic context. Wild bootstrapping Variance Ratio test is implemented to detect the market efficiency with the most recent and abundant data. Results show that the market efficiency in the period of 2014–2020 is around 0.3951, less than 1, suggesting a weak form of efficiency. Observing the sub-sample periods, the efficiency shows to be quite volatile: it climbes from 0.3621 to 0.4027 and finally drops to 0.3985. Furthermore, the market efficiency soares after the COVID-19, which echoes the smooth local reopening thanks to supporting policies. To some extent, this study enlarged the analysis of COVID-19 impact on the industrial sector and for this reason it provides important reference for further research. The unique contribution of this paper is to provide the more updated evidence on the efficiency of China's pilot carbon market, as well as proofs of soaring market efficiency, after the pandemic. • Market efficiency analysis is performed. • Wild bootstrapping Variance Ratio test is implemented. • Market efficiency in the period of 2014–2020 is around 0.3951 • The efficiency shows to be quite volatile. • Market efficiency soars after the COVID-19. [ABSTRACT FROM AUTHOR]

This paper studies static and dynamic connectedness among carbon, traditional (oil and coal)/new energy and material (iron, aluminum, cement, and plastic) markets based on the Diebold Yilmaz (2012) method and the Barunik and Krehlik (2018) method. First, total connectedness is larger in the short term and enhanced after the COVID-19 outbreak. Second, material markets exhibit higher explanatory power; plastic prices, for example, have played a leading role during the pandemic crisis according to the networks. Third, the spillover of China's carbon markets post-outbreak is about twice as large as pre-outbreak, showing positive net connectedness in the medium and long term. Carbon markets' spillover is relatively small and mainly contributes to new energy. Finally, time-varying analysis demonstrate that the positive and negative values of time-varying connectedness peak due to economic shocks or global emergencies. High connectedness with longer duration may be caused by a sudden emergency rather than anticipated events. These findings can offer significant benefits to policymakers, high-carbon businesses and investors in crafting appropriate strategies with heterogeneous frequency horizons. • Spillovers among carbon, traditional/new energy and material markets are examined before and during the COVID-19. • Spillover effects of materials are strongest. • China's carbon market's spillover is small, and carbon prices have positive net connectedness in the medium and long term. • New energy has become the main net transmitter during the COVID-19 pandemic. • Spillovers with longer duration are brought by unexpected crisis rather than anticipated events. [ABSTRACT FROM AUTHOR]

This paper investigates the multidimensional risk spillovers among crude oil, the US and Chinese stock markets during the COVID-19 epidemic through a GARCHSK-Mixed Copula-CoVaR-Network method. Firstly, we find that during the COVID-19 period, the oil-stock risk spillovers are obviously stronger than those during the normal period. And there are significant risk spillovers from the US and Chinese stock markets to the oil markets. It is also discovered that the oil markets are greatly influenced by the second board stock markets, also known as the growth enterprise markets, especially during the COVID-19 outbreak. Furthermore, the bidirectional China-oil risk spillovers during the COVID-19 pandemic have rapidly increased. Besides, it is reported that the relationships across oil futures, main board and second board stock markets in the US and China are stable under different TSI levels and extreme events. Finally, the GARCHSK-Mixed Copula-CoVaR-Network outperforms the control groups in terms of marginal distribution and dependence structure. Our study not only offers new method and insight into the oil-stock relationship, but also has economic implications for investors and policymakers. • The multidimensional oil-stock risk spillovers during the COVID-19 pandemic are investigated. • There are significant risk spillovers from the stock markets to the oil markets. • Oil markets receive high risk spillovers from second board markets. • The bidirectional risk spillovers between Chinese stocks and oil have rapidly increased. • The relationships across oil and stocks are stable under most situations. [ABSTRACT FROM AUTHOR]

Emergence of COVID-19 pandemic in China hit oil prices most, traded at a negative for the first time ever in the international oil market. In this paper, we examine the dynamic effect on four major oil prices of COVID-19 with reference to China and Nigeria. We use daily frequency data, and employ structural vector autoregressive method for the analysis. We find that the impact of COVID-19 pandemic accounted for smallest shares of movement in Bonny and Daqing oil prices, only 14% in China's Daqing and 17% in Nigeria' Bonny, and the effect is even weaker on BRENT and WTI, 7% on each price as forecast error parameters indicate. This shows that the impact of infections of COVID-19 can short-lived and leave a minimal impact on economies, but the reaction of the market itself is subject matter. Thus, it is predicted that oil prices are likely to rise in future weeks as oil demand and major economies are expected to fully open and quickly recover. China may need to take advantage of the present low oil price to benefit its economy, while Nigeria may need to be careful in external borrowing binge embarked on to cushion the effect of oil price falls as it may debt-trap the economy. • Emergence of COVID-19 pandemic in China hit oil prices most, traded at a negative for the first time. • Dynamic effect on four major oil prices of COVID-19 is examined with reference to China and Nigeria. • COVID-19 pandemic accounted for a small share movement in Bonny (17%) and Daqing (14%) oil prices. • The impact of the infection can short-lived, but the reaction of the market itself is subject matter. • China should take advantage of the low oil price, Nigeria should be careful of external borrowing. [ABSTRACT FROM AUTHOR]