Domestic Greenhouse Gas Emissions Trading Markets: Forward Pricing and Banking Impacts

Maeda A (2001). Domestic Greenhouse Gas Emissions Trading Markets: Forward Pricing and Banking Impacts. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-01-048

[img]
Preview
Text
IR-01-048.pdf

Download (167kB) | Preview

Abstract

The paper describes the development of analytical models and how they assist in examining domestic greenhouse gas emissions trading markets. Issues such as forward contract pricing and the impact of the introduction of banking are highlighted. The following findings are presented in the paper: 1) Domestic emissions forward markets prices are greater than expected future spot prices if the market comprises regulated emitters only; 2) Forward prices can however, become lower than expected future spot prices as the trade volume of non-emitter market participants exceeds that of regulated emitters; 3) When the regulatory authority allows banking, the current spot trade market and future spot markets are linked to each other. As a result, the increase of uncertainty on the future spot markets are linked to each other. As a result, the increase of uncertainty on future spot markets may contribute to the decline of the current spot price at first due to the presence of non-emitter market participants, but soon will give rise to the increase.

Item Type: Monograph (IIASA Interim Report)
Research Programs: Environmentally Compatible Energy Strategies (ECS)
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 02:13
Last Modified: 05 Nov 2016 12:00
URI: http://pure.iiasa.ac.at/6474

Actions (login required)

View Item View Item

International Institute for Applied Systems Analysis (IIASA)
Schlossplatz 1, A-2361 Laxenburg, Austria
Phone: (+43 2236) 807 0 Fax:(+43 2236) 71 313