The EU Emissions Trading Scheme: the Effects of Industrial Production and CO2 Emissions on Carbon Prices
This article critically examines the impact of industrial production for sectors covered by the EU Emissions Trading Scheme (EU ETS) on emissions allowance spot prices during Phase I (2005-2007). First, sector production indices are used as a proxy of economic activity in sectors covered by the EU ETS. Second, a ratio of allowance allocation relative to baseline CO2 emissions is used to measure the extent to which installations are constrained by the EU ETS. We show that carbon price changes react not only to energy prices forecast errors and extreme temperatures events, but also to industrial production in three sectors covered by the EU ETS: combustion, paper and iron.
Volume (Year): (2008)
Issue (Month): 116 ()
|Contact details of provider:|| Postal: 113, rue de Grenelle, 75700 Paris SP07|
Phone: 33 01 53 68 55 00
Fax: 33 01 53 68 55 01
Web page: http://www.cepii.fr
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:cii:cepiei:2008-4td. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.