A comparison of reduced-form permit price models and their empirical performances

Georg Gr�ll and Luca Taschini

No 33, GRI Working Papers from Grantham Research Institute on Climate Change and the Environment

Abstract: Equilibrium models have been proposed in literature with the aim of describing the evolution of the price of emission permits. This paper derives first a reduced-form model from an equilibrium model and thereby explains how existing reduced-form models are related to equilibrium models. Second, by means of calibration to historical data, it is shown how these reduced-form models perform in the current price-evolution framework also with respect to standard continuous time stochastic models.

Date: 2010-12
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: A comparison of reduced-form permit price models and their empirical performances (2010)
Working Paper: A Comparison of Reduced-Form Permit Price Models and their Empirical Performances (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:lsg:lsgwps:wp33

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