A Model of Carbon Price Interactions with International Embodied Carbon ()
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.
Share and Cite:
Lin, Y. (2017) A Model of Carbon Price Interactions with International Embodied Carbon.
Open Journal of Social Sciences,
5, 27-36. doi:
10.4236/jss.2017.53004.