This book answers such questions as: Under what conditions could a market-based approach help decrease emissions and lead to sustainable economic growth? What investment strategies should be promoted via the Kyoto protocol and the EU Emission Trading Scheme?

The current economic and environmental situation poses fundamental questions that this book aims to answer: Under which conditions could a market-based approach contribute to a decrease in emissions? How are abatement and investment strategies generated or promoted under permit regimes like the European Union Emission Trading Scheme (EU ETS)? In the context of the EU ETS, what is the trade-off between production, technological changes and pollution?

This book is intended to provide students and practitioners the knowledge and theoretical tools they need in order to answer these and other more general questions in the context of so-called environmental finance theory, a new field of research that investigates the economic, financial and managerial impacts of market-based environmental policies.

Analyzes emissions markets in a real options setting Clear description (through examples) of the dynamic decision-making processes of emitting companies in the context of the EU ETS Designed for undergraduate and graduate students, journalists, policy makers and NGOs Includes supplementary material: sn.pub/extras

Autorentext

Marc Chesney holds a Ph.D. in Finance from the University of Geneva and obtained his habilitation from the Sorbonne University. He is currently Professor of Finance and Vice-Director of the Department of Banking and Finance of the University of Zurich where he created the Environmental Finance course. He is an expert in quantitative finance (real options) and environmental economics. He was previously Professor and Associate Dean at HEC Paris. Jonathan Gheyssens holds a PhD in Economics from the NADEL Center for Development and Cooperation at ETH Zurich and is in charge of economic research activities for the REDD+ Finance and Sustainable Land Use division of UNEP's Finance Initiative based in Geneva, Switzerland. His research is focused on real options, environmental and climate economics, and REDD schemes. Anca Claudia Pana is a young researcher at the University of Zurich, Switzerland. She completed her Bachelor studies in Banking and Finance atthe University of Bucharest, Romania. In 2010, she graduated from the MSc in Financial Engineering and Risk Management at HEC Lausanne, Switzerland. Since then she is enrolled in the PhD program at the University of Zurich, under the supervision of Prof. Dr. Marc Chesney. Her research interests are environmental and resource economics, market failures, real options, and development economics. Luca Taschini is an expert in environmental economics, industrial organisation, energy economics, finance and the application of economics to public policy issues. He is a Research Fellow at the Grantham Research Institute at the London School of Economics where he leads the Carbon Trading and Finance research programme. His current research investigates how market-based environmental regulations are working in theory and in practice. More specifically, he is studying the functioning of cost containment mechanisms, market participation restrictions, and the linkage of environmentalmarkets. He has led consulting work on market-based instruments including work on designing emission trading systems and the design of the EU Market Stability Reserve and other supply control mechanisms. He holds an Ph.D. in Economics from the University of Zurich, and an M.A. in Politics and Economics from the University of Bergamo. He was also a visiting scholar at the Joint Program on the Science and Policy of Global Change (MIT) and at the Research Center for Sustainability Science (Ritsumeikan University - Japan).

Inhalt

1 Introduction.- 2 The Issue of Climate Change.- 3 The Rise of the Emission Markets.- 4 The Economics of Mitigation Strategies.- 5 The Finance of Environment Investments.- 6 The Emission Price Dynamics.- Bibliography.