This article investigates the modelling of the convenience yield in the European carbon market by using daily and intradaily measures of volatility. The convenience yield stems from differences in spot and futures prices, and can explain why firms hold inventories. The main findings are that (i)...

This article explains the role of the convenience yield in the relationships linking spot and futures prices in commodity derivatives markets. First, this variable restores the non arbitrage relationship between the prices of the underlying asset and the derivative instrument. Second, it allows...

This article emphasises that the information provided by term structures of commodity prices has an influence on the real option value and on the investment decision. We exhibit first of all the analysis framework: the evaluation of an oil field. We suppose that a single source of uncertainty -...

La présentation de la théorie du stockage et de la notion de convenience yield permet d’exposer les fondements théoriques des modèles de structure par terme des prix des commodités. Ces derniers peuvent être utilisés pour réaliser des opérations de couverture ou dans le cadre de...

The reality of protected area management is that enforcing forest and park boundaries is costly and so most likely incomplete, due in part to the pressures exerted on the boundaries by local people who often have traditionally relied on the park resources. Buffer zones are increasingly being...

This paper shows that the use of hyperbolic discounting in environmental regulation can have unfortunate consequences. In a three-period model we demonstrate that a planner who `naively` employs hyperbolic discounting and fails to anticipate problems of dynamic inconsistency, can oversee a...