Transmission between EU allowance prices and clean energy index

The S&P GSCI Carbon Emission Allowances and the S&P Global Clean Energy Index are chosen to investigate the transmission between the carbon market and clean energy market. The Liang's causality analysis based on information transfer is used to detect the causal effects between the two markets. A significant unidirectional long-term and stable causality from EUA to CEI from 2013 to 2014 and a bidirectional causal relationship between CEI and EUA after 2020 are identified. (C) 2021 The Authors. Published by Elsevier B.V.