Efficiency of European emissions markets: lessons and implications
Article
Article Title | Efficiency of European emissions markets: lessons and implications |
---|---|
ERA Journal ID | 32863 |
Article Category | Article |
Authors | Krishnamurti, Chandrasekhar (Author) and Hoque, Ariful (Author) |
Journal Title | Energy Policy |
Journal Citation | 39 (10), pp. 6575-6582 |
Number of Pages | 8 |
Year | 2011 |
Publisher | Elsevier |
Place of Publication | Oxford, United Kingdom |
ISSN | 0301-4215 |
1873-6777 | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.enpol.2011.07.062 |
Web Address (URL) | http://www.sciencedirect.com/science/article/pii/S0301421511005970 |
Abstract | While prior studies have shown that emission rights and futures contracts on emission rights are efficiently priced, there are no studies on the efficiency of the options market. Therefore, this study fills the gap. We examine empirical evidence regarding the efficiency of the options market for emissions rights in Europe. We employ the put-call parity approach to test the efficiency of options on emission rights traded in the European market. This implies that firms can trade options on emission rights in addition to other existing strategies in order to manage their greenhouse gas emissions. |
Keywords | CO2 emission rights options; emissions trading scheme; put-call parity; global warming; greenhouse gases; commerce; energy market |
ANZSRC Field of Research 2020 | 380105. Environment and resource economics |
410101. Carbon sequestration science | |
380110. International economics | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | School of Accounting, Economics and Finance |
University of South Australia | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q0y78/efficiency-of-european-emissions-markets-lessons-and-implications
1934
total views14
total downloads4
views this month0
downloads this month