Price drivers and structural breaks in European carbon prices 2005-07
Alberola, Emilie; Chevallier, Julien; Chèze, Benoît (2008), Price drivers and structural breaks in European carbon prices 2005-07, Energy Policy, 36, 2, p. 787-797. http://dx.doi.org/10.1016/j.enpol.2007.10.029
TypeArticle accepté pour publication ou publié
Journal nameEnergy Policy
MetadataShow full item record
Abstract (EN)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). 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 allows to isolate distinct fundamentals evolving overtime. The results extend previous literature by showing that EUA spot prices react not only to energy prices with forecast errors, but also to unanticipated temperatures changes during colder events. Besides, the sub-period decomposition of the pilot phase gives a better grasp of institutional and market events that drive allowance price changes.
Subjects / KeywordsCO2; Market price fundamentals; European Union Emissions Trading Scheme; Carbon emissions trading
Showing items related by title and author.
European carbon prices fundamentals in 2005-2007: the effects of energy markets, temperatures and sectorial production Chevallier, Julien; Alberola, Emilie; Chèze, Benoît (2007-10) Communication / Conférence
The EU emissions trading scheme : The effects of industrial production and CO2 emissions on carbon prices Alberola, Emilie; Chevallier, Julien; Chèze, Benoît (2008) Article accepté pour publication ou publié
Emissions Compliances and Carbon Prices under the EU ETS: A Country Specific Analysis of Industrial Sectors Chèze, Benoît; Chevallier, Julien; Alberola, Emilie (2009) Article accepté pour publication ou publié