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Energies 2008, 1(3), 120-153; doi:10.3390/en1030120

What You Should Know About Carbon Markets

1
Mission Climat de la Caisse des Dépôts, 278 , Boulevard Saint - Germain, 75356 Paris 07 SP. France
2
Department of Financial Economics, Avda de los Naranjos s/n, Faculty of Economics, University of Valencia, 46022 Valencia, Spain
*
Author to whom correspondence should be addressed.
Received: 15 October 2008 / Revised: 16 December 2008 / Accepted: 16 December 2008 / Published: 17 December 2008
(This article belongs to the Special Issue Energy Solutions in the Era of Climate Change)
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Abstract

Since the entry into force of the Kyoto Protocol, carbon trading has been in continuous expansion. In this paper, we review the origins of carbon trading in order to understand how carbon trading works in Europe and, specifically, the functioning of the European Union Emission Trading Scheme (EU ETS) and the workings of several spot, futures and options markets where European Union Allowances are traded. As well, the linking of the EU ETS with the other United Nations carbon markets is also studied.
Keywords: Emission Trading; European Union Allowances; Carbon Markets Emission Trading; European Union Allowances; Carbon Markets
This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

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Mansanet-Bataller, M.; Pardo, Á. What You Should Know About Carbon Markets. Energies 2008, 1, 120-153.

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