On the efficiency of the European carbon market: New evidence from Phase II

George Daskalakis

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63 Citations (Scopus)


I examine in the period 2008-2011 the efficiency of four carbon dioxide (CO2) emission allowance futures traded in the Intercontinental Exchange (ICE). To this end, I assess the profitability of trading strategies based on simple technical analysis rules and naïve forecasts. The results from 2010 onwards are consistent with weak market efficiency. In turn, this finding suggests that the European carbon market is gradually attaining a state of maturity.
Original languageEnglish
Pages (from-to)369-375
JournalEnergy Policy
Publication statusPublished - 2013


  • Emission allowances
  • EU Emissions Trading Scheme
  • Market efficiency
  • Carbon markets
  • Phase II
  • Technical analysis
  • Trading strategies

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