CO2 emission permit prices plunge in Europe: What’s up?
CO2 emission permit prices plunge In Europe: What’s up? / Adele Morris, Brookings, 17/05/2013
Recent headlines proclaim “deep trouble” in the European cap-and-trade system for greenhouse gases, evidenced by the decline in allowance spot prices from over $25 per metric ton of carbon dioxide in June 2008 to about $3 this month. Although many press articles have referred to an “oversupply” of emissions permits, suggesting some kind of intrinsic imbalance, the markets are clearing just fine. It’s just that the price is lower than forecast…