TY  - JOUR
TT  - Dynamic Interactions between Carbon and Energy Prices in theU.S. Regional Greenhouse Gas Initiative
AU  - Kim, Man-Keun
AU  - Lee, Kangil
PY  - 2015
DA  - June
JF  - International Journal of Energy Economics and Policy
JO  - IJEEP
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4553
SP  - 494
EP  - 501
VL  - 5
IS  - 2
KW  - Carbon emission trading
KW  - Lag Augmented Vector Autoregression
KW  - Regional Greenhouse Gas Initiative
N2  - Numerous studies have investigated the dynamic interrelationship between carbon emission trading market and energy markets. Previous studies focused on the European Union Emissions Trading Scheme ascertain that carbon market and energy markets are closely attached, and find that electricity market is the main driver of the system. Our research on U.S. Regional Greenhouse Gas Initiative (RGGI) using Lag Augmented Vector Autoregression reveals that the RGGI market and electricity market in the region are tied but not strongly, unlike the EU-ETS. This loose relationship between the two markets might be explained by the recent weak carbon credit demand stemming from fuel switching and low electricity demand. Another finding is that natural gas is the main driver of the RGGI system, which is possibly due to from the recent shale gas boom.
UR  - https://dergipark.org.tr/tr/pub/ijeeep/issue//350903
L1  - https://dergipark.org.tr/tr/download/article-file/361407
ER  -