CO2 Prices, Energy and Weather

Mansanet Bataller, Maria; Pardo Tornero, Ángel; Valor, Enric

doi:10.2139/ssrn.913964

CO2 Prices, Energy and Weather

33 Pages Posted: 13 Jul 2006 Last revised: 30 Nov 2013

See all articles by Maria Mansanet Bataller

Maria Mansanet Bataller

University of Valencia - Faculty of Economics

Ángel Pardo Tornero

University of Valencia - Department of Financial Economics

Enric Valor

University of Valencia - Department of Financial Economics

Abstract

One of the main objectives of the European Union Emission Trading Scheme is the establishment of a market price for allowances that show to European CO2 emitting installations the environmental impact of their polluting activities. The aim of this paper is to study the effect of those weather and non-weather variables that academic and market agents consider as the major determinants of CO2 prices. The results show that the most emission intensive energy sources are the principal factors in the determination of CO2 prices, and that only extreme temperatures influence them.

Keywords: CO2 prices, EU ETS, Energy, Kyoto Protocol, Weather

JEL Classification: Q49, G12, G15

Suggested Citation: Suggested Citation

Mansanet Bataller, Maria and Pardo Tornero, Ángel and Valor i Micó, Enric, CO2 Prices, Energy and Weather. Available at SSRN: https://ssrn.com/abstract=913964 or http://dx.doi.org/10.2139/ssrn.913964