A Comparison of Reduced-Form Permit Price Models and their Empirical Performances
Name
2009-018.pdf
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399.52 KB
Format
Adobe PDF
Checksum (MD5)
f147632e00c592d2fdb95b13341cfafd
Author(s)
Taschini, Luca
Grüll, Georg
Date Issued
September 2009
Publisher
MIT Center for Energy and Environmental Policy Research
Series/Report no.
MIT-CEEPR (Series);2009-018
Abstract
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.
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