A Comparison of Reduced-Form Permit Price Models and their Empirical Performances
Author(s)
Taschini, Luca; Grüll, Georg![Thumbnail](/bitstream/handle/1721.1/51716/2009-018.pdf.jpg?sequence=4&isAllowed=y)
Download2009-018.pdf (399.5Kb)
Metadata
Show full item recordAbstract
Equilibrium models have been proposed in literature with the aim of describing the evolution of the price of emission permits. This paper derives _rst estimation methods for the calibration of three competing equilibrium models. Second, it demonstrates how their reduced-form versions are inter-related. Third, by means of calibration to historical data, it is shown how these reduced-form models perform in the current price-evolution framework also with respect to standard continuous time stochastic models.
Date issued
2009-09Publisher
MIT Center for Energy and Environmental Policy Research
Other identifiers
2009-018
Series/Report no.
MIT-CEEPR (Series);2009-018