TITLE:
External Shocks and the Law of Carbon Price Fluctuation—Based on the Framework of CWT and EEMD
AUTHORS:
Yihan Zhou, Xing Yang, Jianling Shu
KEYWORDS:
Carbon Price Fluctuations, External Shocks, The Wavelet Analysis Method, EEMD Model
JOURNAL NAME:
Low Carbon Economy,
Vol.8 No.3,
August
23,
2017
ABSTRACT: This paper focused on researching the fluctuation of
carbon trading price caused by the external shocks through analyzing the data
of three-phase carbon spot price from Blue Next Environmental Exchange and the
European Climate Exchange (ECX). The
results are the following: 1) released important
information and events will seriously affect the carbon price fluctuations; some important information are
released that cause sharp
fluctuations in a short period of time; the Sudden events lead to long-term,
drastic fluctuations in carbon price and its influence over the impact of important
information; 2) the impact of external
events is always corresponding to the low-frequency component of time sequence; this is because the low-frequency
component usually reflects the data signal amplitude which is severer, and the high-frequency component represents the data
signal amplitude which is a smaller part; it has random fluctuations of the time sequence.