China Policy Journal Volume 1, Number 1, Fall 2018 | Page 36

Assessing the Implementation of Local Emission Trading Schemes in China
Table 2. Review of Empirical Studies on Factors Affecting CO 2
Emission Allowance Price
Literature
ETS/
Dependent
Variable
Time
Period
Main Factors Examined
Method
Alberola,
Chevallier, and
Chèze (2008a,b)
EU ETS/EUA
spot price
2005.7–
2007.4
Crude oil price, natural gas
price, coal price, switch price of
CO 2
between coal and natural
gas, temperature, electricity
price, the compliance break,
the announcement of stricter
allocation
NW OLS,
GARCH
Boersen and
Scholtens (2014)
EU ETS/EUA
futures price
2008.12–
2012.12
Crude oil price, natural gas price,
coal price, the switch possibility
from coal to natural gas
Threshold
GARCH
Chevallier (2011)
EU ETS/EUA
futures price
2005.1–
2010.7
Crude oil price, natural gas price,
coal price, aggregated industrial
production index
Markovswitching
VAR
Hammoudeh,
Nguyen, and
Sousa (2014a)
EU ETS/EUA
spot price
2006.8–
2013.11
Crude oil price, natural gas price,
coal price, electricity price
Bayesian
Structural
VAR
Tan and Wang
(2017b)
EU ETS/EUA
futures price
2005.4–
2016.1
Crude oil price, natural gas
price, coal price, macroeconomic
indicators
Quantile
regression
Creti, Jouvet, and
Mignon (2012)
EU ETS/EUA
futures price
2005.6–
2010.12
Crude oil price, stock index, switch
price of CO 2
between coal and
natural gas
OLS
Keppler and
Mansanet-
Bataller (2010)
EU ETS/
EUA spot and
futures price
2005.1–
2007.12
and 2008
Natural gas price, electricity price,
coal price, temperature, stock
index
OLS
Koch et al. (2014)
EU ETS/EUA
futures price
2008.1–
2013.10
Natural gas price, coal price,
macroeconomic indicators, the
number of issued CERs, electricity
production from wind/solar,
switch price of CO 2
between coal
and natural gas
NW-OLS
Kim and Koo
(2010)
Chicago/
CCX a trading
emission
allowance
volume
2005.1–
2008.11
Crude oil price, natural gas price,
coal price, temperature, economy
crisis dummy
ADL b
Hammoudeh et
al. (2015)
US ETS/
Proxied by
EUA price
2006.8–
2013.11
Crude oil price, natural gas price,
coal price, electricity price
NADL c
Hammoudeh,
Nguyen, and
Sousa (2014b)
US ETS/
Proxied by
EUA price
2006.7–
2013.11
Crude oil price, natural gas price,
coal price, electricity price
Quantile
regressions
a
Chicago Climate Exchange (CCX); b Autoregressive distributed lag (ADL); c Nonlinear autoregressive distributed
lag model (NADL).
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