The recent implementation of the EU Emissions Trading Scheme (EU ETS) in January 2005 created new financial risks for emitting firms. To deal with these risks, options are traded since October 2006. Because the EU ETS is a new market, the relevant underlying model for option pricing is still a controversial issue. This article improves our understanding of this issue by characterizing the condi...

The recent implementation of the EU Emissions Trading Scheme (EU ETS) in January 2005 created new financial risks for emitting firms. To deal with these risks, options are traded since October 2006. Because the EU ETS is a new market, the relevant underlying model for option pricing is still a controversial issue. This article improves our understanding of this issue by characterizing the condi...

This paper presents an estimation of the cost of reducing CO2 emissions as agreed in Kyoto by Annex I countries. Unlike most of the existing literature, this paper focuses on European Union countries abatement costs and, using a simple model, estimates the role of each EU country within a EU market as well as an Annex 1 market. As a major result, marginal (and total) abatement costs for each EU...

Market-based Measures (MBM), a catalyst for new and effective technologies, can be highly rewarding the shipping industry on its way to reach 50% decarbonization by 2050. To regulate emissions improve energy efficiency in maritime transportation industry, MBMs are focal point at decision-taking level both International Maritime Organization (IMO) European Commission (EC). EC included into Union...

Climate Change (CC) is a major issue of our century. Controlling the constraints Greenhouse Gas (GHG) emissions through transformation into opportunities, in an organization to increase industrial production, has become necessity. The main reason for this adoption was effectiveness energy management and responsible linkages that are being developed determine issues opportunities carbon finance ...

The paper focuses on the impacts of inclusion maritime sector in EU Emissions Trading System (ETS). enforcement a regional Market-Based Measure (MBM) such as ETS may provide financial incentives to shipping operators reconfigure their networks and avoid voyages inside European Economic Area (EEA). This investigates risk container vessels engaging evasive port calls by replacing EEA transshipmen...

This article constitutes a new contribution to the analysis of overlapping instruments to cover the same emission sources. Using both an analytical and a numerical model, we show that when the risk that the CO2 price drops to zero and the political unavailability of a CO2 tax (at least in the European Union) are taken into account, it can be socially optimal to implement an additional instrumen...

This study simulates a CO2 permit market in Romania using a dynamic general equilibrium model. The carbon constraint is set at 20.7% below the reference emissions level for sectors eligible according to the EU-ETS (European Union Emission Trading Scheme). Free permit distribution enhances growth despite a severe emissions cap, because environmental regulation stimulates structural changes (Port...

In addition to the already present Climate and Energy package, the European Union (EU) plans to include a binding target to reduce energy consumption. We analyze the rationales the EU invokes to justify such an overlapping and develop a minimal common framework to study interactions arising from the combination of instruments reducing emissions, promoting renewable energy (RE) production and re...

We introduce a model for the evolution of emissions and price allowances in carbon market, such as European Union Emissions Trading System (EU ETS). The accounts multiple trading periods, or phases, with times at which compliance can occur. At end each period, participating firms must surrender their made during that additional be used following periods. show multiperiod allowance pricing probl...