Modeling the dynamic impacts of maritime network blockage on global supply chains.

Recent phenomena such as pandemics, geopolitical tensions, and climate change-induced extreme weather events have caused transportation network interruptions, revealing vulnerabilities in the global supply chain. A salient example is the March 2021 Suez Canal blockage, which delayed 432 vessels carrying cargo valued at $92.7 billion, triggering widespread supply chain disruptions. Our ability to model the spatiotemporal ramifications of such incidents remains limited. To fill this gap, we develop an agent-based complex network model integrated with frequently updated maritime data. The Suez Canal blockage is taken as a case study. The results indicate that the effects of such blockages go beyond the directly affected countries and sectors. The Suez Canal blockage led to global losses of about $136.9 ($127.5-$147.3) billion, with India suffering 75% of these losses. Global losses show a nonlinear relationship with the duration of blockage and exhibit intricate trends post blockage. Our proposed model can be applied to diverse blockage scenarios, potentially acting as an early-alert system for the ensuing supply chain impacts. Furthermore, high-resolution daily data post blockage offer valuable insights that can help nations and industries enhance their resilience against similar future events.

Key factors affecting carbon prices from a time-varying perspective.

For humankind to sustain a livable atmosphere on the planet, many countries have committed to achieving carbon neutralization. Countries mainly reduce carbon emissions by regulations through a carbon tax or by establishing a carbon market using economic stimuli. In this paper, we use the least absolute shrinkage and selection operator (LASSO) method to select the key determinants of a carbon market and then use the Markov switching vector autoregression (MSVAR) model to study the market's driving factors and analyze its time-varying characteristics. The results show that there are perceptible time-varying characteristics and notable differences among markets. During COVID-19, energy factors had a long-term shock on the carbon market, economic factors had a short-term shock on the carbon market, and the economic recession has led to fluctuations in the carbon market. In addition, through MSVAR, the results show that the energy market has a negative effect on the carbon market, and the stock market has a positive effect on the carbon market. In periods of low volatility, compared with the natural gas market and coal market, the oil market has a stronger shock on the carbon market. In periods of high volatility, the coal market has a stronger shock on the carbon market. In terms of emission reduction, countries around the world would be wise to change their energy consumption structure, reduce coal use, and shift to a cleaner energy consumption structure.

A multi-factor integrated model for carbon price forecasting: Market interaction promoting carbon emission reduction.

Reasonable carbon price can effectively promote the low-carbon transformation of economy. The future carbon price has an important guiding significance for enterprises and the country. However, the nonlinear and high noise characteristics inherent in carbon price make them challenging to predict accurately. A hybrid decomposition and integration prediction model is proposed using the Hodrick-Prescott filter, an improved grey model and an extreme learning machine to solve this problem. First, a large number of factors that influence carbon price are collected by meta-analysis. The final input is selected through a two-stage feature selection process. Second, the HP filter is used to decompose the input into long-term trends and short-term fluctuations predicted by the improved GM and ELM, respectively. Finally, the two prediction sequences are compared to obtain the final result. European Union Allowances futures price data are applied for empirical analysis. The results show that the prediction performance of this model is better than the other 10 benchmark models, the T-bill, Stoxx50, S&P clean energy index and Brent oil price in the financial and energy markets are helpful in the carbon price's prediction. T-bill affects carbon price frequently, Stoxx50 has a negative correlation with the carbon price in the influence period. Under normal circumstances, the S&P clean energy index is positively correlated with the carbon price. However, when the economic situation is depressed, resulting in a short-term negative correlation between them. In general, carbon market is significantly affected by cross spill over between different markets. The method not only improves the accuracy of carbon price forecast, but also the application of the improved GM explains the reasons for the change of carbon price, which is helpful to promote the realization of carbon neutralization by market-oriented means.