edoc

Allowance price drivers in the first phase of the EU ETS

Hintermann, Beat. (2010) Allowance price drivers in the first phase of the EU ETS. Journal of environmental economics and management, 59. pp. 43-56.

[img] PDF - Accepted Version
Available under License CC BY-NC-ND (Attribution-NonCommercial-NoDerivatives).

525Kb

Official URL: http://edoc.unibas.ch/dok/A5840533

Downloads: Statistics Overview

Abstract

In the first phase of the EU Emissions Trading Scheme (EU ETS), the price per ton of CO2 initially rose to over €30; the price then collapsed to essentially zero by mid 2007. By deriving a structural model of the allowance price under the assumption of efficient markets I examine the extent to which this variation in price can be explained by marginal abatement costs. I then gradually relax the model by allowing for delayed adjustment of price to fundamentals, as well as by introducing lagged LHS variables. The pattern of the results suggests that while prices were not initially driven by marginal abatement costs, this inefficiency was largely corrected after the accounting of 2005 emissions in April 2006.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Public Economics / Public Finance (Hintermann)
UniBasel Contributors:Hintermann, Beat
Item Type:Article, refereed
Article Subtype:Research Article
Bibsysno:Link to catalogue
Publisher:Academic Press
ISSN:0095-0696
Note:Publication type according to Uni Basel Research Database: Journal article
Language:English
Identification Number:
Last Modified:12 Jun 2018 09:41
Deposited On:14 Sep 2012 07:10

Repository Staff Only: item control page