EconPapers    
Economics at your fingertips  
 

The Chicago Climate Exchange and market efficiency: an empirical analysis

Omid Sabbaghi () and Navid Sabbaghi ()
Additional contact information
Omid Sabbaghi: University of Detroit Mercy
Navid Sabbaghi: University of San Francisco

Environmental Economics and Policy Studies, 2017, vol. 19, issue 4, No 4, 734 pages

Abstract: Abstract This study provides the first empirical investigation of informational efficiency for the Chicago Climate Exchange. Using daily settlement price and trading volume data for the Carbon Financial Instruments, we conduct a battery of econometric tests in assessing weak-form market efficiency for the Chicago Climate Exchange during its Phases I and II. Results of the empirical tests collectively suggest an absence of weak-form informational efficiency during Phase I, yet signs of improvement in informational efficiency during Phase II. Our results highlight the dual roles of trading activity and government regulation in promoting informationally efficient and well-functioning carbon markets in the United States.

Keywords: Market efficiency; Carbon markets; Chicago Climate Exchange (search for similar items in EconPapers)
JEL-codes: C58 G10 G14 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10018-016-0171-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:envpol:v:19:y:2017:i:4:d:10.1007_s10018-016-0171-4

Ordering information: This journal article can be ordered from
http://www.springer. ... mental/journal/10018

DOI: 10.1007/s10018-016-0171-4

Access Statistics for this article

Environmental Economics and Policy Studies is currently edited by Ken-Ichi Akao

More articles in Environmental Economics and Policy Studies from Springer, Society for Environmental Economics and Policy Studies - SEEPS Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-20
Handle: RePEc:spr:envpol:v:19:y:2017:i:4:d:10.1007_s10018-016-0171-4