Econometric Analysis of Carbon Markets

Aimed at those with a basic understanding of time series econometrics, this analysis of the EU's emissions trading scheme and its 'clean development mechanism' shows how to use econometric techniques to analyze the evolving and expanding carbon markets sphere.

Through analysis of the European Union Emissions Trading Scheme (EU ETS) and the Clean Development Mechanism (CDM), this book demonstrates how to use a variety of econometric techniques to analyze the evolving and expanding carbon markets sphere, techniques that can be extrapolated to the worldwide marketplace. It features stylized facts about carbon markets from an economics perspective, as well as covering key aspects of pricing strategies, risk and portfolio management.

Provides comprehensive coverage and quantitative treatment of carbon markets, with economic content Offers online access with hyperlinks to data and R computer codes to develop programming skills Suitable as a textbook in econometrics detailing the techniques used to analyze the CO2 markets (EU ETS, CDM) Includes problem sets, a solutions manual, and presentation slides for instructors Includes supplementary material: sn.pub/extras

Inhalt

1. Introduction to Emissions Trading.- 2. CO2 Price Fundamentals.- 3. Link With The Macroeconomy.- 4. The Clean Development Mechanism.- 5. Risk-Hedging Strategies And Portfolio Management.- 6. Advanced Topics: Time-To-Maturity and Modeling the Volatility of Carbon Prices.- Solutions.- Index.