TITLE:
A Model of Carbon Price Interactions with International Embodied Carbon
AUTHORS:
Yan Lin
KEYWORDS:
International Embodied Carbon, Carbon Price, VAR Model
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.5 No.3,
March
16,
2017
ABSTRACT: This paper takes the EU as an example to discuss the relationship between international embodied carbon and carbon price through VAR model. The result shows that there is a long-term interaction but an asymmetric relationship between them: The impact of the scale of international embodied carbon on carbon futures price is significantly negative, while the impact of carbon futures price on the scale of international embodied carbon is negligible. Then this paper tries to come up with corresponding policy suggestion in the end based on empirical findings.