Grüll, Georg; Kiesel, Rüdiger:

Quantifying the CO2 Permit Price Sensitivity

In: Zeitschrift für Energiewirtschaft, (2012) ; Online First
ISSN: 1866-2765
Zeitschriftenaufsatz / Fach: Wirtschaftswissenschaften
Fakultät für Wirtschaftswissenschaften
Equilibrium models have been widely used in literature with the aim of showing theoretical properties of emission trading systems. This paper derives first a new equilibrium model. Second, it is shown that the theoretical permit price is related to changes in the expectation about how long regulated companies will need to exhaust the remaining permits. Third, by application to real data it demonstrates that emission trading systems are inherently prone to jumps.