The European Commission and EUA prices: a high-frequency analysis of the EC's decisions on second NAPs

Waldemar Rotfuß (), Christian Conrad and Daniel Rittler

No 09-045, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper empirically examines price formation in the European Union Emissions Trading Scheme (EU ETS). Our analysis shows that unexpected allocations of European Union Allowances (EUAs) lead to pronounced price reactions of the expected signs. Moreover, we find evidence that the adjustment of EUA prices to the European Commission's decisions on second National Allocation Plans (NAPs) is not instantaneous, but takes up to six hours after the decision announcement.

Keywords: EU ETS; price formation; European Union Allowance (EUA); European Commission (search for similar items in EconPapers)
JEL-codes: G13 G14 G15 G17 G19 Q4 Q5 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-eec, nep-ene, nep-env, nep-mst and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:09045

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