A multiscale analysis of spillover effects and price forecasting in China's carbon market

Key Points

• Price forecasting in China's carbon market shows substantial spillover effects across various scales, indicating interconnected market dynamics.
• Key evidence highlights that spillover effects can influence carbon prices significantly, emphasizing a 30% variance in price predictions due to these interactions.
• Multiscale analysis using historical market data unveiled complex relationships between different carbon trading entities and regional markets.
• The findings suggest a need for enhanced forecasting models to better predict carbon market trends, highlighting potential regulatory implications.