Are the European Carbon Markets Efficient?

Are the European Carbon Markets Efficient?
Author :
Publisher :
Total Pages : 26
Release :
ISBN-10 : OCLC:1290716589
ISBN-13 :
Rating : 4/5 (89 Downloads)

Book Synopsis Are the European Carbon Markets Efficient? by : George Daskalakis

Download or read book Are the European Carbon Markets Efficient? written by George Daskalakis and published by . This book was released on 2014 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the efficiency of the European market for carbon dioxide emission allowances. To this end, spot and futures market data are analyzed from Powernext, Nord Pool and ECX, the three main exchanges under the European Union Emission Trading Scheme (EU ETS). The methodology employs econometric testing procedures and trading strategies based on technical analysis rules and naiquest;ve forecasts. The empirical results suggest that the behavior of the markets under consideration is not consistent with weak form efficiency. It is argued that this could be due to the immaturity of the EU ETS and to the restrictions imposed on short-selling and on quot;bankingquot; of emission allowances. The results are particularly important for emission intensive firms, policy makers, risk managers and for active or passive investors in the emerging class of energy and carbon hedge funds.


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