EconPapers    
Economics at your fingertips  
 

European carbon prices fundamentals in 2005-2007: the effects of energy markets, temperatures and sectorial production

Emilie Alberola, Julien Chevallier and Benoît Chèze ()

No 2007-33, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This article aims at characterizing the daily price fundamentals of European Union Allowances (EUAs) traded since 2005 as part of the Emissions Trading Scheme (ETS). First, the presence of two structural changes on April, 2006 following the disclosure of 2005 verified emissions and on October, 2006 following the European Commission announcement of stricter Phase II allocation allow to isolate distinct fundamentals evolving overtime. The results extend previous literature by showing that spot prices react not only to other energy markets and temperatures, but also to economic activity within the main sectors covered by the EU ETS such as proxied by sectoral production indices. Besides, the sub-period decomposition of the pilot phase gives a better grasp of institutional and market events that drive allowance price changes.

Keywords: Carbon Emissions Trading; Market Price Fundamentals; EU ETS (search for similar items in EconPapers)
JEL-codes: Q40 Q48 Q54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-ene and nep-env
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://economix.fr/pdf/dt/2007/WP_EcoX_2007-33.pdf (application/pdf)

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:drm:wpaper:2007-33

Access Statistics for this paper

More papers in EconomiX Working Papers from University of Paris Nanterre, EconomiX Contact information at EDIRC.
Bibliographic data for series maintained by Valerie Mignon ().

 
Page updated 2019-12-03
Handle: RePEc:drm:wpaper:2007-33