The Implications of Climate Policy, Carbon Pricing Mechanisms, and Global Energy Market Fluctuations on Global CO 2 : Evidence From Quantile‐On‐Quantile Connectedness

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a novel empirical approach (quantile-on-quantile connectedness) to study interdependencies among climate policy, carbon markets, and emissions, useful for further research on transition risk.

🏢実務担当者:Highlights that carbon pricing can have reverse effects at high levels, suggesting careful design of carbon markets; also underscores the importance of public climate concern as a driver.

🏛政策担当者:Emphasizes that enhancing public climate concern and well-designed carbon pricing are more impactful than reducing policy uncertainty alone; supports climate summits and renewable energy legislation.

This manuscript investigates the impact of Climate Policy Uncertainty (CPU), the Climate Concern Index (CCI), carbon pricing, and global clean and conventional energy returns on global CO 2 emissions. Using quantile‐on‐quantile connectedness, we estimated direct and reverse relationships under extreme and normative economic conditions. Key findings reveal that reverse‐related connectedness in CCI is more pronounced than direct relatedness with respect to global CO 2 emissions, whereas CPU exhibits the opposite trend. CCI persistently transmits shocks across all CO 2 emission quantiles, while CPU primarily receives shocks from CO 2 emissions. These results indicate that societal engagement with climate issues plays a critical role in mitigating environmental degradation, exerting a more significant impact than the uncertainties inherent in climate policy transitions. The interplay between carbon pricing and CO 2 emissions shows a reverse relationship, particularly at high carbon prices and low CO 2 activity. Under average market conditions, carbon pricing predominantly acts as a shock transmitter. The findings here highlight the imperative of carbon trading mechanisms to effectively harness the mitigation of climate change. Furthermore, renewable energy serves as an information conduit to CO 2 levels, except when both variables are in the uppermost quantile, where renewable energy becomes a recipient. Results from dynamic Total Connectedness Indices (TCI) indicate that interconnections are significantly shaped by pivotal events, such as climate summits and national renewable energy legislation. These findings align with the UN Sustainable Development Goals and offer substantial implications for climate change mitigation and sustainability initiatives.

• semanticscholar https://doi.org/10.1002/sd.71282first seen 2026-06-09 04:45:04