Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluation

This study examines volatility spillovers among climate-policy-relevant sectors in the Chinese stock market across both time and frequency domains. It further explores the impact of climate policy uncertainty on the risk spillover effect in the Chinese stock market and its underlying mechanisms. The...

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Main Authors: Zhiwei Zhang, Yahua Xu, Fei Su
格式: Article
語言:英语
出版: KeAi Communications Co., Ltd. 2025-09-01
叢編:Journal of Management Science and Engineering
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在線閱讀:http://www.sciencedirect.com/science/article/pii/S209623202500023X
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author Zhiwei Zhang
Yahua Xu
Fei Su
author_facet Zhiwei Zhang
Yahua Xu
Fei Su
author_sort Zhiwei Zhang
collection DOAJ
description This study examines volatility spillovers among climate-policy-relevant sectors in the Chinese stock market across both time and frequency domains. It further explores the impact of climate policy uncertainty on the risk spillover effect in the Chinese stock market and its underlying mechanisms. The results reveal strong risk spillovers among climate-policy-relevant sectors across both time and frequency scales and emphasise that these are primarily driven by short-term risk contagion in the lower frequency bands. Additionally, climate policy uncertainty significantly reduces the risk spillover effect among climate-policy-relevant sectors. Further analysis demonstrates that investors' risk perception and adjustments in investment strategies are key channels through which climate policy uncertainty affects sectoral volatility spillovers. Overall, this study highlights the nonlinear and complex relationship between climate policy uncertainty and stock market spillovers, offering valuable practical insights for investors and policymakers.
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spelling doaj-art-ebe84fb4f35240c1a4517e86bfef2fc42025-07-07T04:06:35ZengKeAi Communications Co., Ltd.Journal of Management Science and Engineering2096-23202025-09-01103332347Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluationZhiwei Zhang0Yahua Xu1Fei Su2College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, Jiangsu, 211106, ChinaChina Economics and Management Academy, School of Innovation and Development, Central University of Finance and Economics, Beijing, 100081, ChinaCollege of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, Jiangsu, 211106, China; Corresponding author.This study examines volatility spillovers among climate-policy-relevant sectors in the Chinese stock market across both time and frequency domains. It further explores the impact of climate policy uncertainty on the risk spillover effect in the Chinese stock market and its underlying mechanisms. The results reveal strong risk spillovers among climate-policy-relevant sectors across both time and frequency scales and emphasise that these are primarily driven by short-term risk contagion in the lower frequency bands. Additionally, climate policy uncertainty significantly reduces the risk spillover effect among climate-policy-relevant sectors. Further analysis demonstrates that investors' risk perception and adjustments in investment strategies are key channels through which climate policy uncertainty affects sectoral volatility spillovers. Overall, this study highlights the nonlinear and complex relationship between climate policy uncertainty and stock market spillovers, offering valuable practical insights for investors and policymakers.http://www.sciencedirect.com/science/article/pii/S209623202500023XG11G12G14
spellingShingle Zhiwei Zhang
Yahua Xu
Fei Su
Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluation
Journal of Management Science and Engineering
G11
G12
G14
title Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluation
title_full Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluation
title_fullStr Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluation
title_full_unstemmed Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluation
title_short Climate policy uncertainty and dynamic volatility spillovers in Chinese stock market: Based on sectoral evaluation
title_sort climate policy uncertainty and dynamic volatility spillovers in chinese stock market based on sectoral evaluation
topic G11
G12
G14
url http://www.sciencedirect.com/science/article/pii/S209623202500023X
work_keys_str_mv AT zhiweizhang climatepolicyuncertaintyanddynamicvolatilityspilloversinchinesestockmarketbasedonsectoralevaluation
AT yahuaxu climatepolicyuncertaintyanddynamicvolatilityspilloversinchinesestockmarketbasedonsectoralevaluation
AT feisu climatepolicyuncertaintyanddynamicvolatilityspilloversinchinesestockmarketbasedonsectoralevaluation