Europe moves on carbon emissions

Europe moves on carbon emissions

Faced with the latest predictions of the effects of climate change, the European Union has agreed to a fresh cut in carbon dioxide emissions of 20 per cent and to press for a global reduction of 30 per cent. Environment ministers dismissed calls to water down EU objectives and approved a binding set of new targets to be fulfilled by 2020, covering the period after the expiry of the Kyoto protoc...

Reducing Carbon Dioxide Emissions

DEBATE ABOUT the increasing concentration of carbon dioxide (CO2) in the atmosphere, and fears that it will result in an intensification of the Greenhouse Effect and global warming, have spurred consideration of sustainable development. It has been claimed that technology to improve energy efficiency already exists that is cost-effective without consideration of the gains from abatement of carb...

Reflections—The Emerging Literature on Emissions Trading in Europe

In its first issue, in 2007, this journal devoted a three-article symposium to the European Union Emissions Trading Scheme (EU ETS). Why revisit this topic so soon? There are a few reasons. Since our profession’s beginning, the integration of environment and economy via markets has been a core objective, and the reason why many of us entered the field of environmental economics in the first pla...

A Simplified Emissions Estimation Methodology Based on MOVES to Estimate Vehicle Emissions from Transportation Assignment and Simulation Models

Is carbon emissions trading profitable?

a r t i c l e i n f o The European Carbon Emissions Trading Scheme introduced in 2005 has led to both spot and futures market trading of carbon emissions. However, despite seven years of trading, we have no knowledge on how profitable carbon emissions trading is. In this paper, we first test whether carbon forward returns predict carbon spot returns. We find strong evidence on both in-sample an...