The European Union Emissions Trading System reduced CO2 emissions despite low prices

The Value Relevance of Greenhouse Gas Emissions under the European Union Carbon Emissions Trading Scheme

This study examines the valuation relevance of greenhouse gas emissions under the European Union Carbon Emission Trading Scheme (EU ETS). We posit that carbon emissions affect firm valuation only to the extent that a firm’s emissions exceed its carbon allowances under a cap and trade system and the extent of its inability to pass on carbon related compliance costs to consumers and end users. We...

Identifying the Proper Incidence of Regulation in a European Union Greenhouse Gas Emissions Allowance Trading System

This scoping paper was prepared primarily to provide background information to members of the Study Team on key issues related to the design of an European emissions trading scheme and to assist the "brainstorming" process. The views expressed in this paper are not necessarily those of CCAP who do cannot accept responsibility for the completeness or accuracy of the information and analysis cont...

Catalysts for price discovery in the European Union Emissions Trading System

We provide the first evidence on catalysts for price discovery in the European Union Emissions Trading System. Specifically, by employing high frequency data across a wide range of fungible securities, we find that trading costs are a more important determinant of price discovery than either the implicit provision of leverage in securities such as futures and options or the existence of market ...

Reform Options for the European Emissions Trading System ( EU ETS )

Stakeholder Reaction to Emissions Trading in the United States, the European Union, and the Netherlands