The EU Emissions Trading Scheme : Disentangling the Effects of Industrial Production and CO2 Emissions on Carbon Prices
This article critically examines the impact of industrial production for sectors covered by the EU Emissions Trading Scheme (EU ETS) on emissions allowance spot prices during Phase I (2005-2007). Using sector production indices and CO2 emissions compliance positions dened by a ratio of allowance allocation relative to baseline emissions, we show that the effect of industrial activity on EU carbon price changes shall be analysed in conjunction with production peaks and compliance net short/long positions at the sector level. The results extend previous literature by showing that carbon price changes react not only to energy prices forecast errors and extreme temperatures events, but also to industrial production in three sectors covered by the EU ETS: combustion, paper and iron.
Year of publication: |
2008
|
---|---|
Authors: | Chevallier, Julien ; Alberola, Emilie ; Chèze, Benoît |
Institutions: | EconomiX, Université Paris Ouest-Nanterre la Défense (Paris X) |
Subject: | EU ETS | Emissions Trading | Carbon Pricing | CO2 Emissions | Industrial Production |
Saved in:
freely available
Extent: | application/pdf |
---|---|
Series: | |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Number 2008-12 37 pages |
Classification: | L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L16 - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure; Industrial Price Indices ; Q48 - Government Policy ; Q54 - Climate; Natural Disasters |
Source: |
Persistent link: https://www.econbiz.de/10005404307