Permit price dynamics in the U.S. SO2 trading program: A cointegration approach
Permit price dynamics in the U.S. SO2 trading program: A cointegration approach
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DOI:
10.1016/j.eneco.2011.04.004
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发表时间:
2012-05
期刊:
影响因子:
12.8
通讯作者:
Mohamed Amine Boutabba;Olivier Beaumais;S. Lardic
中科院分区:
文献类型:
--
作者:
Mohamed Amine Boutabba;Olivier Beaumais;S. Lardic
The aim of this paper is to study empirically the determination and the dynamic behavior of the SO2permit prices. Previous research focused on ex-post market price analysis without taking weather conditions into account. Therefore, this study attempts to fill a gap in the literature by providing new empirical evidence on the SO2price evolution and its interactions with macroeconomic variables, microeconomic variables and climate variables. Using monthly data from January 1995 to December 2006, our estimation results indicate the existence of a long-term relationship between SO2permit price, scrubbing costs, industrial production, and weather conditions. In the short run, SO2permit price is affected by scrubbing costs, energy prices, and weather conditions. Policy makers and private investors could benefit from the findings of this study that provides useful information on the characteristics of the SO2market and may plan their strategy.