This paper addresses the economic impact of the EU Emission Trading Scheme for carbon on wholesale electricity and gas prices. Specifically, we analyse the mutual relationships between electricity, gas and carbon prices in the daily spot markets in the United Kingdom. Using a structural...

Power generation companies are among the biggest emitters of greenhouse gases and are, therefore, potentially among the most exposed companies when it comes to regulatory risk and uncertainties in climate change policy. In practice, however, their risk exposure is reduced by the ability of power...

This paper addresses the economic impact of the EU Emission Trading Scheme for carbon on wholesale electricity and gas prices. Specifically, we analyse the mutual relationships between electricity, gas and carbon prices in the daily spot markets in the United Kingdom. Using a structural...