establish a price for emissions. The right to emit CO2 therefore becomes a scarce production input. In this paper we want to … analyze the determinants of the price for allowances in the EU-ETS and study whether it reacts to fundamental influence …, the price reacts to changes in energy prices and weather variations. …

Since 2005, the EU ETS has provided a market-based price signal for European carbon emissions, accompanied by … examining allowance price formation. A consensus has emerged that allowance prices are significantly related to fuel prices and … abatement are better at explaining allowance price variation during certain periods. Yet, our understanding of the level of the …

In this paper we empirically investigate potential determinants of allowance (EUA) price dynamics in the European Union …, place particular emphasis on the importance of price variable selection, and include an extensive data of renewable energy … feed-in in Europe. We show (i) that results are extremely sensitive to choosing different price series of potential …