The European Emission Trading Scheme: Implications For Long-Term Investment Valuation
AbstractAs the EU Emission Trading Scheme (EU ETS) moves towards its third phase (2013–2020) it has undergone numerous improvements, including a gradual increase in the use of auctions as a distribution mechanism and the prevalence of sectoral criteria over National Allocation Plans. At the same time, emission allowances with maturities up to December 2020 have begun to be traded on the futures markets, reflecting the impact that the new measures are expected to have on prices. This paper sets out to obtain a financial valuation of the impact and analyze whether the resulting prices will facilitate investment in installations to bring about reductions in emissions. The effect on investments of the potential introduction of caps and floors on emission trading prices is also studied.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal Climate Change Economics.
Volume (Year): 02 (2011)
Issue (Month): 02 ()
Contact details of provider:
Web page: http://www.worldscinet.com/cce/cce.shtml
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).
If references are entirely missing, you can add them using this form.