Resource title

First evidence of asymmetric cost pass-through of EU emissions allowances: examining wholesale electricity prices in Germany

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image for OpenScout resource :: First evidence of asymmetric cost pass-through of EU emissions allowances: examining wholesale electricity prices in Germany

Resource description

This paper applies the literature on asymmetric price transmission to the emerging commodity market for EU emissions allowances (EUA). We utilize an error correction model and an autoregressive distributed lag model to measure the relationship between CO2 price changes and the development of wholesale electricity prices. Using data from the German market for electricity and EUAs, we find that the rising prices of EUAs have a stronger impact on wholesale electricity prices than falling prices

Resource author

Georg Zachmann, Christian R. von Hirschhausen

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Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/27233

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Adapt according to the presented license agreement and reference the original author.