This paper investigates the asymmetric relationship between oil shocks and the carbon emission trading market in China using the nonlinear autoregressive distributed lag (NARDL) model. The results show that: oil shocks have a long-run asymmetric effect on carbon allowance prices, and the oil supply shock is the main factor causing carbon allowance price changes in 2013–2020. The oil supply shock and oil demand shock cause the price of carbon allowances to rise, and the oil risk shock causes the price of carbon allowances to decrease. Moreover,...
