Wavelet packet transforms analysis applied to carbon prices
Abstract
This paper deals with carbon price variations using a multi time scale decomposition based on the theory of wavelets. Our approach is based on wavelet packet transforms. This original approach enables us to identify that the periods which contribute the most to EUA spot, EUA futures, and CER futures price variations are February-April 2008, October-November 2008, and the recent 2009-2011 business cycle which correspond to major institutional uncertainties and changes in macroeconomic fundamentals. This wavelet decomposition therefore provides additional evidence on the drivers of carbon prices being institutional events and economic activity.Download Info
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Paper provided by Université Paris-Dauphine in its series Open Access publications from Université Paris-Dauphine with number urn:hdl:123456789/6515.Length:
Date of creation: Jun 2011
Date of revision:
Publication status: Published in Economics Bulletin (2011-06) v.31, p.1731-1747
Handle: RePEc:ner:dauphi:urn:hdl:123456789/6515
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Related research
Keywords: Carbon; price variations; wavelet decomposition; wavelet packet transforms;Other versions of this item:
- Julien Chevallier, 2011. "Wavelet packet transforms analysis applied to carbon prices," Economics Bulletin, AccessEcon, vol. 31(2), pages 1731-1747.
- C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
- L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-02 (All new papers)
- NEP-ENE-2011-07-02 (Energy Economics)
- NEP-ENV-2011-07-02 (Environmental Economics)
- NEP-HME-2011-07-02 (Heterodox Microeconomics)
References
References listed on IDEASPlease 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.:
- Yogo, Motohiro, 2008. "Measuring business cycles: A wavelet analysis of economic time series," Economics Letters, Elsevier, vol. 100(2), pages 208-212, August.
- Ombao H. C & Raz J. A & von Sachs R. & Malow B. A, 2001. "Automatic Statistical Analysis of Bivariate Nonstationary Time Series," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 543-560, June.
- Emilie Alberola & Julien Pierre Chevallier, 2007.
"European carbon prices and banking restrictions: evidence from phase I (2005-2007),"
EconomiX Working Papers
2007-32, University of Paris West - Nanterre la Défense, EconomiX.
- Emilie Alberola & Julien Chevallier, 2009. "European Carbon Prices and Banking Restrictions: Evidence from Phase I (2005-2007)," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 51-80.
- Lee, Jin, 2005. "Estimating memory parameter in the US inflation rate," Economics Letters, Elsevier, vol. 87(2), pages 207-210, May.
- Julien Chevallier, 2010. "The European carbon market (2005-2007): banking, pricing and risk-hedging strategies," Working Papers halshs-00458787, HAL.
- repec:ebl:ecbull:v:3:y:2006:i:33:p:1-10 is not listed on IDEAS
- Ombao, Hernando & von Sachs, Rainer & Guo, Wensheng, 2005. "SLEX Analysis of Multivariate Nonstationary Time Series," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 519-531, June.
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