Open Access

Reflections on the Mechanisms to Protect Against Formation of Price Bubble in the EU ETS Market

Robert Jeszke

Robert Jeszke

Institute of Environmental Protection – National Research Institute / The National Centre for Emissions Management / The Centre for Climate and Energy Analyses
Orcid profile
Search for this author on
Sciendo|Google Scholar
Jeszke, Robert
 and 
Sebastian Lizak

Sebastian Lizak

Institute of Environmental Protection – National Research Institute / The National Centre for Emissions Management / The Centre for Climate and Energy Analyses
Orcid profile
Search for this author on
Sciendo|Google Scholar
Lizak, Sebastian
  
Jun 30, 2021
Reflections on the Mechanisms to Protect Against Formation of Price Bubble in the EU ETS Market's Cover Image
About this article
Previous Article
Next Article
Cite
Download Cover
Published Online: Jun 30, 2021
Page range: 8 - 17
DOI: https://doi.org/10.2478/oszn-2021-0005
Keywords
© 2021 Robert Jeszke et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

EUA allowances on the secondary spot market in the period from April 2013 to June 2021 (prices in EUR)Source: Own study based on ICE and EEX data
EUA allowances on the secondary spot market in the period from April 2013 to June 2021 (prices in EUR)Source: Own study based on ICE and EEX data

Figure 2

Comparison of Bitcoin quotations, EUA allowances (DEC Futures) and NASDAQ over April 2013 to June 2021 (in US dollars)Source: Own study based on investing.com data
Comparison of Bitcoin quotations, EUA allowances (DEC Futures) and NASDAQ over April 2013 to June 2021 (in US dollars)Source: Own study based on investing.com data

Figure 3

EUA allowance prices (blue line) in recent years with the 200-session moving average (green line) on a weekly basis (prices in EUR).Source: investing.com
EUA allowance prices (blue line) in recent years with the 200-session moving average (green line) on a weekly basis (prices in EUR).Source: investing.com

Figure 4

EUA allowances futures long positions by buyer typeSource: own study based on Refinitiv
EUA allowances futures long positions by buyer typeSource: own study based on Refinitiv

Figure 5

Option 1 of Article 29a based on 2019 and 2020 simple averages. In this example assuming a daily EUA price increase of 0,31 EUR the mechanism would be triggered in 28-th of December 2021 when the closing EUA price would reach to 94,18 EUR (6-moving average crossing triple 2019–2020 average)Source: own study based on ICE and EEX data
Option 1 of Article 29a based on 2019 and 2020 simple averages. In this example assuming a daily EUA price increase of 0,31 EUR the mechanism would be triggered in 28-th of December 2021 when the closing EUA price would reach to 94,18 EUR (6-moving average crossing triple 2019–2020 average)Source: own study based on ICE and EEX data

Figure 6

Option 2 of Article 29a based on 2019 and 2020 moving averages with constant triple average. In this example assuming a daily EUA price increase of 0,51 EUR the mechanism would be triggered 28 December 2021 when the closing EUA price would reach 121,18 EURSource: own study based on ICE and EEX data
Option 2 of Article 29a based on 2019 and 2020 moving averages with constant triple average. In this example assuming a daily EUA price increase of 0,51 EUR the mechanism would be triggered 28 December 2021 when the closing EUA price would reach 121,18 EURSource: own study based on ICE and EEX data

Figure 7

Option 3 of Article 29a based on 2019 and 2020 moving averages with triple moving average. In this example assuming a daily EUA price increase of 3 EUR the mechanism would be triggered on 28 December 2021 when the closing EUA price would reach to 457,33 EUR (six-moving average crossing triple 2-year average)Source: own study based on ICE and EEX data
Option 3 of Article 29a based on 2019 and 2020 moving averages with triple moving average. In this example assuming a daily EUA price increase of 3 EUR the mechanism would be triggered on 28 December 2021 when the closing EUA price would reach to 457,33 EUR (six-moving average crossing triple 2-year average)Source: own study based on ICE and EEX data
Language:
English
Publication timeframe:
4 times per year
Journal Subjects:
Life Sciences, Ecology
Journal RSS Feed