Carbon Credits: Who is the Leader of the Pack?

Vicente Medina, Angel Pardo, Roberto Pascual

Abstract


We provide the first intraday analysis on the contribution to price discovery of two emissions carbon credits: European Union Allowances (EUAs) and Certified Emission Reductions (CERs). We find that EUAs lead price discovery but CERs play a growing role and, therefore, should not be ignored.

Keywords: European Union Allowances; Certified Emission Reductions; co-integration, price-discovery; high frequency data; intraday analysis.

JEL Classifications: G10


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