From fundamentals to financial assets: the evolution of understanding price formation in the EU ETS

M Friedrich, EM Mauer, M Pahle, O Tietjen - 2020 - econstor.eu
Price formation in the EU Emission Trading System (EU ETS) has persistently puzzled
economists and policy makers. In recent years, the empirical literature investigating this topic …

[HTML][HTML] The time-varying effects of liquidity and market efficiency of the European Union carbon market: evidence from the TVP-SVAR-SV approach

M Zhong, R Zhang, X Ren - Energy Economics, 2023 - Elsevier
We use the time-varying parameter structural vector autoregression stochastic volatility (TVP-
SVAR-SV) and causality-in-quantiles methods to explore the linkage between market …

Liquidity and market efficiency in the world's largest carbon market

G Ibikunle, A Gregoriou, AGF Hoepner… - The British Accounting …, 2016 - Elsevier
We investigate liquidity and market efficiency on the world's largest carbon exchange,
IntercontinentalExchange Inc.'s European Climate Exchange (ECX), by using intraday short …

Improving the liquidity of China's carbon market: Insight from the effect of carbon price transmission under the policy release

Y Song, T Liu, B Ye, Y Zhu, Y Li, X Song - Journal of Cleaner Production, 2019 - Elsevier
Through a series of policies release, the trading system of China's carbon market is being
improved, but its current liquidity is still low. To improve market liquidity, this paper analyzes …

[HTML][HTML] Trader types and volatility of emission allowance prices. Evidence from EU ETS Phase I

AC Balietti - Energy Policy, 2016 - Elsevier
This paper studies the relation between the trading activity of market participants and the
volatility of the European Emission Allowance price during Phase I of the European Union …

Bidirectional interactions between trading behaviors and carbon prices in European Union emission trading scheme

J Wang, F Gu, Y Liu, Y Fan, J Guo - Journal of Cleaner Production, 2019 - Elsevier
We investigate the bidirectional interactions between trading behaviors and carbon prices in
the first carbon market, ie, European Union Emissions Trading Scheme (EU ETS). The …

[HTML][HTML] A microstructure analysis of the carbon finance market

D Bredin, S Hyde, C Muckley - International Review of Financial Analysis, 2014 - Elsevier
Abstract The European Union Emissions Trading Scheme is the key policy instrument of the
European Commission's Climate Change Program aimed at reducing greenhouse gas …

[HTML][HTML] Speculative and hedging activities in the European carbon market

JJ Lucia, M Mansanet-Bataller, Á Pardo - Energy Policy, 2015 - Elsevier
We explore the dynamics of the speculative and hedging activities in European futures
carbon markets by using volume and open interest data. A comparison of the three phases …

[HTML][HTML] Why do carbon prices and price volatility change?

BM Ibrahim, IA Kalaitzoglou - Journal of Banking & Finance, 2016 - Elsevier
An asymmetric information microstructural pricing model is proposed in which price
responses to information and liquidity vary with every transaction. bid-ask quotes and price …

[HTML][HTML] The timeline of trading frictions in the European carbon market

V Medina, Á Pardo, R Pascual - Energy Economics, 2014 - Elsevier
During its trial phase (Phase I), the EU Greenhouse Gas Emission Trading Scheme (EU-
ETS) collapsed because of an over-allocation of emission allowances. We evaluate the …