This article studies the price relationships between EU emissions allowances (EUAs) – valid under the EU Emissions Trading Scheme (EU ETS) – and secondary Certified Emissions Reductions (sCERs) – established from primary CERs generated through the Kyoto Protocol's Clean Development...

One of the objectives of the European Union Emissions Trading Scheme (EUETS), the EU's flagship cap-and-trade policy, is to give an incentive to carbon-constrained entities to invest in a production apparatus that emit less carbon. So far, analytical work and related evidence has been limited to...