Predicting Chinese carbon prices and influence factors: evidence from quantile shrinkage methods

The study delves into predicting carbon prices in China using advanced statistical methods and examines how different factors influence these prices under various market conditions and unexpected events. With the global push for carbon pricing to combat climate change, understanding these dynamics is crucial. The findings suggest that traditional forecasting methods may need refinement to accurately reflect the complexities and uncertainties in carbon markets, highlighting the need for more sophisticated models to guide policy and investment decisions.