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). First, the presence of two structural changes on April, 2006 following the disclosure of 2005 verified emissions and on October,...

The well known economic advantage of tradable permits over command and control obviously vanishes if firms do not trade because of regulatory uncertainty. In fact, uncertainty about political decision changes in the permits program could make firms reluctant to participate in tradable permits...