Environmental Engineering Reference
In-Depth Information
channel of in
uence, which goes from the state of current production levels (e.g.,
whether industrial production capabilities are
) to the carbon price.
The underlying economic logic unfolds as follows: when economic activity (and
industrial production taken here as a by-product) increases, then CO 2 emissions
mechanically increase (in the absence of short-term energy ef
tense
or
idle
ciency gains). This
translates ultimately in carbon price increases, ceteris paribus . We have been able
to verify this relationship in the Threshold VAR framework, with a sample span-
ning April 2005
January 2013. Extensions of this line of work lie in the
eld of
-
nonlinear time series econometrics. 12
Acknowledgments For helpful comments on previous versions, I wish to thank Bruce Mizrach,
Daniel Rittler, Neil R. Ericsson, Hans-Martin Krolzig, Emilie Alberola, Beno
î
tS
é
vi, Anna Creti,
Philipp Koenig, Fabien Roques, Beno
t Leguet, Kenneth Roskelley, Alexander Kurov, Mikel
Gonzalez, Ibon Galarraga, Alberto Ansuategi, Georg Zachmann, Paulina Beato, Jobst Heitzig,
J
î
rgen Kurths, Philipp Ringler, Matthias Reeg, Antoine Mandel, Nicola Botta, Eric Smith, Doyne
Farmer, Florian Landis, Robert Schmidt, Ulrike Konneke; and seminar participants at the 19th
Annual Symposium of the Society for Nonlinear Dynamics and Econometrics (Washington DC),
the 65th European Meeting of the Econometric Society (Oslo), the HEC Energy and Finance Chair
Research Conference on
ü
(Paris), the 48th Annual Meeting of the
Eastern Finance Association (Boston), the BC3 Low Carbon Programme Workshop on
The Behavior of Carbon Prices
The
Economics of Green Energy and Ef ciency
(Bilbao), the PIK Workshop on
Modelling Carbon
Prices
Interacting agent networks and Strategies under risk
(Potsdam).
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12
See [ 9 ] for a brief introduction.
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