The CO2 Allowance Price in the European Emissions Trading Scheme

Inhalt "The CO2 Allowance Price in the European Emissions Trading Scheme":

Since January 2005 large installations from the
energy industry and other carbon-intensive industries
are part of an EU-wide greenhouse gas (GHG) emissions
trading scheme (EU ETS). It covers over 10,000
installations that are responsible for about 50% of
Europe's CO2 and 40% of its total GHG emissions. It
is expected to help achieving the EU's obligations
under the UN Framework Convention on Climate Change
and the Kyoto Protocol in a cost-effective way. The
author Eva Benz examines the price of the EU CO2
allowances (EUA) by using empirical and experimental
analysis as well as theoretical models. She examines
the EUA price pattern that has evolved in Phase 1
(2005-2007) by studying daily spot prices and high
frequency data for EUA futures. Besides, she analyzes
CO2 allowance prices under different
policy and market behavior scenarios. A laboratory
experiment with students is concerned with the annual
initial allocation process of EUAs to the
participating firms. The focus is on using auctioning
as (part of the) allocation mechanism as suggested by
the European Commission in 2008 in the "Climate
action and renewable energy package".