Krishnamurti, Chandrasekhar and Hoque, Ariful (2011) Efficiency of European emissions markets: lessons and implications. Energy Policy, 39 (10). pp. 6575-6582. ISSN 0301-4215
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Identification Number or DOI: doi: 10.1016/j.enpol.2011.07.062
While prior studies have shown that emission rights and futures contracts on emission rights are efficiently priced, there are no studies on the efficiency of the options market. Therefore, this study fills the gap. We examine empirical evidence regarding the efficiency of the options market for emissions rights in Europe. We employ the put-call parity approach to test the efficiency of options on emission rights traded in the European market. This implies that firms can trade options on emission rights in addition to other existing strategies in order to manage their greenhouse gas emissions.
|Item Type:||Article (Commonwealth Reporting Category C)|
|Additional Information:||Permanent restricted access to published version due to publisher copyright polciy.|
|Uncontrolled Keywords:||CO2 emission rights options; emissions trading scheme; put-call parity; global warming; greenhouse gases; commerce; energy market|
|Fields of Research (FOR2008):||14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics|
05 Environmental Sciences > 0503 Soil Sciences > 050301 Carbon Sequestration Science
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
|Socio-Economic Objective (SEO2008):||B Ecomonic Development > 91 Economic Framework > 9199 Other Economic Framework > 919901 Carbon and Emissions Trading|
|Deposited On:||21 Oct 2011 11:41|
|Last Modified:||03 Jan 2013 09:50|
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