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

Yves Rannou, Mohamed Amine Boutabba and Pascal Barneto

Energy Economics, 2021, vol. 104, issue C

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.

Keywords: Carbon market; Futures hedging; Green Bond Market; Power firms; Substitute; Complement (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:104:y:2021:i:c:s0140988321005089

DOI: 10.1016/j.eneco.2021.105651

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