The CO2 trading market in Europe: A financial perspective

G. Daskalakis; G. Ibikunle; I. Diaz-Rainey

doi:10.1007/978-3-642-19709-3_4

The CO2 trading market in Europe: A financial perspective

G. Daskalakis, G. Ibikunle, I. Diaz-Rainey

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

The trading of carbon dioxide (CO2) emission allowances, or permits, has been established in recent years as one of the primary mechanisms for tackling global warming and climate change. The European Union (EU) has taken an important initiative in this direction by establishing in 2003 the first ever mandatory cap-and-trade system for CO2 permits: the EU Emissions Trading Scheme (EU ETS). The purpose of this paper is to initially provide a brief introduction to the EU ETS and subsequently assess its operation during the years 2005-2010 from a financial market perspective. The in-sights gained through this analysis are particularly important not only for policy makers and market stakeholders but also for the growing community of the so-called ‘carbon’ investors.

Original language	English
Title of host publication	Financial Aspects in Energy
Subtitle of host publication	A European Perspective
Editors	A. Dorsman et al.
Publisher	Springer-Verlag Berlin Heidelberg
Chapter	4
Pages	51-67
Number of pages	17
ISBN (Electronic)	978-3-642-19709-3
ISBN (Print)	978-3-642-19708-6
DOIs	https://doi.org/10.1007/978-3-642-19709-3_4
Publication status	Published - 2011

Keywords

Carbon finance
Emission allowances
Emissions trading
EU ETS

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1007/978-3-642-19709-3_4

Cite this

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title = "The CO2 trading market in Europe: A financial perspective",

abstract = "The trading of carbon dioxide (CO2) emission allowances, or permits, has been established in recent years as one of the primary mechanisms for tackling global warming and climate change. The European Union (EU) has taken an important initiative in this direction by establishing in 2003 the first ever mandatory cap-and-trade system for CO2 permits: the EU Emissions Trading Scheme (EU ETS). The purpose of this paper is to initially provide a brief introduction to the EU ETS and subsequently assess its operation during the years 2005-2010 from a financial market perspective. The in-sights gained through this analysis are particularly important not only for policy makers and market stakeholders but also for the growing community of the so-called {\textquoteleft}carbon{\textquoteright} investors.",

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AU - Ibikunle, G.

AU - Diaz-Rainey, I.

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N2 - The trading of carbon dioxide (CO2) emission allowances, or permits, has been established in recent years as one of the primary mechanisms for tackling global warming and climate change. The European Union (EU) has taken an important initiative in this direction by establishing in 2003 the first ever mandatory cap-and-trade system for CO2 permits: the EU Emissions Trading Scheme (EU ETS). The purpose of this paper is to initially provide a brief introduction to the EU ETS and subsequently assess its operation during the years 2005-2010 from a financial market perspective. The in-sights gained through this analysis are particularly important not only for policy makers and market stakeholders but also for the growing community of the so-called ‘carbon’ investors.

AB - The trading of carbon dioxide (CO2) emission allowances, or permits, has been established in recent years as one of the primary mechanisms for tackling global warming and climate change. The European Union (EU) has taken an important initiative in this direction by establishing in 2003 the first ever mandatory cap-and-trade system for CO2 permits: the EU Emissions Trading Scheme (EU ETS). The purpose of this paper is to initially provide a brief introduction to the EU ETS and subsequently assess its operation during the years 2005-2010 from a financial market perspective. The in-sights gained through this analysis are particularly important not only for policy makers and market stakeholders but also for the growing community of the so-called ‘carbon’ investors.

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KW - Emission allowances

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