A Study on the Correlation between Carbon Prices and Energy Companies’ Stock Prices Based on the Copula Model

DOI

10.2991/978-94-6463-734-2_83How to use a DOI?

Keywords

Copula model; Carbon emission price; Energy companies; Correlation

Abstract

Since the 21st century, global carbon emissions have been positively correlated with economic development. Research has shifted to exploring the relationship between carbon prices and energy companies’ stock prices. This is crucial for carbon asset management and market performance, especially in China, where the carbon trading market is still in its infancy. This study constructs a theoretical framework linking carbon prices, corporate value, and stock prices. Empirical analysis using the ARIMA(1,0,1)-GARCH(1,1)-t model and the Gumbel Copula function reveals that both carbon prices and energy stock prices exhibit leptokurtosis and volatility clustering, with Hubei carbon prices showing higher volatility. Traditional energy companies’ stock prices show low correlation with carbon prices, while new energy companies’ stock prices are positively correlated, particularly in the upper tail. Tail correlations between carbon prices and energy stock prices are weak, indicating low market linkage effects. The study recommends government support for the new energy industry, promotion of low-carbon technologies, and a green economic transformation. New energy companies should leverage carbon assets to enhance profits, while traditional energy companies should upgrade their low-carbon technologies and improve energy efficiency.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ying Yang
PY  - 2025
DA  - 2025/05/27
TI  - A Study on the Correlation between Carbon Prices and Energy Companies’ Stock Prices Based on the Copula Model
BT  - Proceedings of the 2025 10th International Conference on Social Sciences and Economic Development (ICSSED 2025)
PB  - Atlantis Press
SP  - 757
EP  - 765
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-734-2_83
DO  - 10.2991/978-94-6463-734-2_83
ID  - Yang2025
ER  -