European carbon prices fundamentals in 2005-2007: the effects of energy markets, temperatures and sectorial production
AbstractThis article aims at characterizing the daily price fundamentals of European Union Allowances (EUAs) traded since 2005 as part of the Emissions Trading Scheme (ETS). First, the presence of two structural changes on April, 2006 following the disclosure of 2005 verified emissions and on October, 2006 following the European Commission announcement of stricter Phase II allocation allow to isolate distinct fundamentals evolving overtime. The results extend previous literature by showing that spot prices react not only to other energy markets and temperatures, but also to economic activity within the main sectors covered by the EU ETS such as proxied by sectoral production indices. Besides, the sub-period decomposition of the pilot phase gives a better grasp of institutional and market events that drive allowance price changes.
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Bibliographic InfoPaper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2007-33.
Length: 34 pages
Date of creation: 2007
Date of revision:
Carbon Emissions Trading; Market Price Fundamentals; EU ETS;
Other versions of this item:
- Chevallier, Julien & Alberola, Emilie & Chèze, Benoît, 2008. "European carbon prices fundamentals in 2005-2007: the effects of energy markets, temperatures and sectorial production," Economics Papers from University Paris Dauphine 123456789/4229, Paris Dauphine University.
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-05 (All new papers)
- NEP-EEC-2008-01-05 (European Economics)
- NEP-ENE-2008-01-05 (Energy Economics)
- NEP-ENV-2008-01-05 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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