A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
The Price Determinants of the EU Allowance in the EU Emissions Trading Scheme
The Kyoto Protocol came into effect in 1997 to curb greenhouse gas (GHG) emissions and to address the problem of climate change. The Protocol includes a market-based mechanism designed to offset GHG emissions, called the emissions trading scheme (ETS), allowing companies to “trade„ their shortage or surplus allowance. This study examines the determinants of the EU allowance (EUA) price in Phase 3 of the EU ETS (2013⁻2017). First, the causality between the EUA price and other variables is determined using a Granger causality test. Second, the correlation between the EUA price and each variable is measured using a VECM estimation and an impulse response function. Finally, the relative effect of each variable on the EUA price is determined using a forecast error variance decomposition. The results show that the EUA price has a causal effect on the prices of electricity and natural gas. Second, all variables, except the minimum temperature, show a positive relationship with the EUA price. Furthermore, when unexpected shocks occur, the EUA price shows the highest response to its past price, followed by the electricity price. Third, the past EUA price has the most influence on the EUA price, followed by the coal price.
The Price Determinants of the EU Allowance in the EU Emissions Trading Scheme
The Kyoto Protocol came into effect in 1997 to curb greenhouse gas (GHG) emissions and to address the problem of climate change. The Protocol includes a market-based mechanism designed to offset GHG emissions, called the emissions trading scheme (ETS), allowing companies to “trade„ their shortage or surplus allowance. This study examines the determinants of the EU allowance (EUA) price in Phase 3 of the EU ETS (2013⁻2017). First, the causality between the EUA price and other variables is determined using a Granger causality test. Second, the correlation between the EUA price and each variable is measured using a VECM estimation and an impulse response function. Finally, the relative effect of each variable on the EUA price is determined using a forecast error variance decomposition. The results show that the EUA price has a causal effect on the prices of electricity and natural gas. Second, all variables, except the minimum temperature, show a positive relationship with the EUA price. Furthermore, when unexpected shocks occur, the EUA price shows the highest response to its past price, followed by the electricity price. Third, the past EUA price has the most influence on the EUA price, followed by the coal price.
The Price Determinants of the EU Allowance in the EU Emissions Trading Scheme
Chune Young Chung (author) / Minkyu Jeong (author) / Jason Young (author)
2018
Article (Journal)
Electronic Resource
Unknown
Metadata by DOAJ is licensed under CC BY-SA 1.0
Options for emission allowance allocation under the Eu Emissions Trading Directive
| Online Contents | 2007
Estimating carbon price from a closed emissions trading scheme in the agricultural sector
| Taylor & Francis Verlag | 2012
Innovative Carbon Allowance Allocation Policy for the Shenzhen Emission Trading Scheme in China
| DOAJ | 2015
Environmental Aspects of SO~2 Allowance Trading
| British Library Conference Proceedings | 1992