TY - JOUR
T1 - A joint test of policy contagion with application to the solar sector
AU - Yu-Ling Hsiao, Cody
AU - Wei, Xinyang
AU - Sheng, Ni
AU - Shao, Chengwu
N1 - Publisher Copyright:
© 2021 Elsevier Ltd
PY - 2021/5
Y1 - 2021/5
N2 - This paper examines the impact of China's 2005–2020 solar power energy policies on the stock performance of nine economic sectors in China, Japan, Germany, and the U.S. In order to model how policy shocks affect market performance, we develop a joint contagion test of higher-order co-moments, defining policy contagion as significant changes in the third- and fourth-order co-moments in the post-announcement period as compared to the pre-announcement period. The results show that eight Chinese solar energy policies have significant impacts on nine economic sectors in China, with weaker effects in Germany and the U.S., and the least significance in Japan. Among the eight energy policies, policy supporting plans (i.e., three national five-year plans from 2006 to 2020) provide stronger evidence of contagion to international markets than economic instruments (i.e., feed-in tariffs and subsidies).
AB - This paper examines the impact of China's 2005–2020 solar power energy policies on the stock performance of nine economic sectors in China, Japan, Germany, and the U.S. In order to model how policy shocks affect market performance, we develop a joint contagion test of higher-order co-moments, defining policy contagion as significant changes in the third- and fourth-order co-moments in the post-announcement period as compared to the pre-announcement period. The results show that eight Chinese solar energy policies have significant impacts on nine economic sectors in China, with weaker effects in Germany and the U.S., and the least significance in Japan. Among the eight energy policies, policy supporting plans (i.e., three national five-year plans from 2006 to 2020) provide stronger evidence of contagion to international markets than economic instruments (i.e., feed-in tariffs and subsidies).
KW - China'S five-year plans
KW - Contagion test
KW - Energy policy
KW - Solar power
UR - http://www.scopus.com/inward/record.url?scp=85100657969&partnerID=8YFLogxK
U2 - 10.1016/j.rser.2021.110762
DO - 10.1016/j.rser.2021.110762
M3 - Article
AN - SCOPUS:85100657969
SN - 1364-0321
VL - 141
JO - Renewable and Sustainable Energy Reviews
JF - Renewable and Sustainable Energy Reviews
M1 - 110762
ER -