Informational efficiency of the US SO2 permit market

descriptionPublicationkeyboard_double_arrow_right Article , Preprint 01 Oct 2006 English Publisher:Elsevier BVJournal:Environmental Modelling & Software, volume 21, pages 1,471-1,478 (issn: 1364-8152,

Copyright policy )

Authors: J. ALBRECHT; T. VERBEKE; M. DE CLERCQ;

doi: 10.1016/j.envsoft.2005.07.006

Informational efficiency of the US SO2 permit market

- Summary
- Subjects
- Metrics

Abstract

We test the information efficiency of the market for SO2 permits in the US. In order to do so, we analyse the price process of these permits using techniques that have been widely used in financial economics. The evidence presented in this paper suggests that this market is efficient from an informational point of view. Although one could question this hypothesis from a statistical point of view, economic significance suggests that this market is indeed efficient. 2005 Elsevier Ltd. All rights reserved.

Related Organizations

Ghent University
Belgium

Keywords

SO2, tradable permits market, market efficiency, unit roots, random walk hypothesis.

Impact byBIP!

	selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	8
	popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.	Average
	influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	Top 10%
	impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.	Average