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Are Green Bond and Carbon Markets in Europe complements or substitutes? Insights from the activity of power firms

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  • Rannou, Yves
  • Boutabba, Mohamed Amine
  • Barneto, Pascal

Abstract

This paper studies the interactions between the European carbon and green bond markets from the lens of the European power firms' trading activity over an eight-year period (2013−2020). Those power firms have used two segments of carbon markets differently: one for short-term hedging and speculative purposes and one for long-term hedging needs. The second one is found to have an informational advantage over the other and complements it.

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  • Rannou, Yves & Boutabba, Mohamed Amine & Barneto, Pascal, 2021. "Are Green Bond and Carbon Markets in Europe complements or substitutes? Insights from the activity of power firms," Energy Economics, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:eneeco:v:104:y:2021:i:c:s0140988321005089
    DOI: 10.1016/j.eneco.2021.105651
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