Considering the adverse impacts of climate change on the global economy and ecosystem, energy transition policies have been implemented to decarbonize the global energy industry and thus mitigate the climate change process. However, the path steering away from fossil fuels and moving towards a clean energy future can lead to extensive carbon asset risks (e.g., stranded carbon assets and carbon tail risk), especially in high-carbon firms, and even have major repercussions on the stability of financial systems. Therefore, it is of great importance to reinvestigate carbon asset risk and understand its economic and financial repercussions in the context of the global energy transition.
Currently, a couple of challenges exist in studying carbon asset risk under the global energy transition. First, energy transition-induced carbon asset risk can be nonlinear and concentrated in downside price movements, and new econometric models and tools are needed to monitor, access, and manage it. Second, there exists a carbon-energy-finance system, in which carbon markets and energy finance markets are interdependent, and its complexity further increases the difficulty of carbon risk management. The last challenge is that the ongoing COVID pandemic and geopolitical conflicts may exogenously increase the uncertainty of the global energy transition process, which may eventually impact carbon asset risk. There are extensive questions that are worthy to be studied.
This Research Topic welcomes contributions from scholars engaged in various fields to close the gaps and to shed more light on the problems of carbon asset risk during low carbon transition and implementation of carbon markets. Theoretical studies and empirical studies are welcomed.
Suggested topics for this Research Topic include, but are not limited to, the following:
• Carbon tail risk
• Carbon derivative design and trading
• Carbon-energy-finance system complexity
• Carbon risk hedging and portfolio management
• Forecasting and modeling carbon prices
• Stranded carbon assets
• The relation between low- and high-carbon assets
• The application of Fintech in carbon risk management
• Energy transition-induced carbon asset security issues
• Geopolitical conflicts and carbon asset risk
Considering the adverse impacts of climate change on the global economy and ecosystem, energy transition policies have been implemented to decarbonize the global energy industry and thus mitigate the climate change process. However, the path steering away from fossil fuels and moving towards a clean energy future can lead to extensive carbon asset risks (e.g., stranded carbon assets and carbon tail risk), especially in high-carbon firms, and even have major repercussions on the stability of financial systems. Therefore, it is of great importance to reinvestigate carbon asset risk and understand its economic and financial repercussions in the context of the global energy transition.
Currently, a couple of challenges exist in studying carbon asset risk under the global energy transition. First, energy transition-induced carbon asset risk can be nonlinear and concentrated in downside price movements, and new econometric models and tools are needed to monitor, access, and manage it. Second, there exists a carbon-energy-finance system, in which carbon markets and energy finance markets are interdependent, and its complexity further increases the difficulty of carbon risk management. The last challenge is that the ongoing COVID pandemic and geopolitical conflicts may exogenously increase the uncertainty of the global energy transition process, which may eventually impact carbon asset risk. There are extensive questions that are worthy to be studied.
This Research Topic welcomes contributions from scholars engaged in various fields to close the gaps and to shed more light on the problems of carbon asset risk during low carbon transition and implementation of carbon markets. Theoretical studies and empirical studies are welcomed.
Suggested topics for this Research Topic include, but are not limited to, the following:
• Carbon tail risk
• Carbon derivative design and trading
• Carbon-energy-finance system complexity
• Carbon risk hedging and portfolio management
• Forecasting and modeling carbon prices
• Stranded carbon assets
• The relation between low- and high-carbon assets
• The application of Fintech in carbon risk management
• Energy transition-induced carbon asset security issues
• Geopolitical conflicts and carbon asset risk
