Neuhoff, Karsten; Schopp, Anne; Boyd, Rodney; Stelmakh, … - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2012
for the discount applied to future carbon prices. We use our supply-demand framework to assess currently discussed policy …In the European Emission Trading scheme the supply of allowances exceeds emissions - cumulating, according to our … so as to hedge future carbon costs. As the surplus exceeds this hedging demand, additional allowances need to be acquired …