November 28, 2010

Cost Pass-Through of the EU Emissions Allowances: Examining the European Petroleum Markets

by Victoria Alexeeva-Talebi

- Using advanced time-series techniques, this paper explores the ability of European refineries to pass-through costs associated with the introduction of the EU Emissions Trading Scheme (ETS). The paper thereby fills, the gap in the literature by analysing the interactions between petrol prices and emissions allowances allocated to the refining industry under the EU ETS at the single country level. The analysis is conducted within a multi-national framework and as comprehensive as the weekly data permits, covering 14 EU member states.

Alexeeva-Talebi, V. (2010). "Cost Pass-Through of the EU Emissions Allowances: Examining the European Petroleum Markets." ZEW Discussion Paper No. 10-086, Nov 2010.