Price Determinants of Sulfur Dioxide Market
Submission Type
Event
Expected Graduation Date
2015
Location
Room C102, Center for Natural Sci ences, Illinois Wesleyan University
Start Date
4-18-2015 11:00 AM
End Date
4-18-2015 12:00 PM
Disciplines
Chemistry | Economics
Abstract
The introduction of the U.S. Sulfur Dioxide (SO2) cap and trade market in 1994 has provided a significant approach to mitigating the hazardous effects of acid rain. The merit of the cap and trade program is within the design of the program itself because the cap determines the total SO2 emission reduction, while the trading process determines which sources reduce their emission of SO2 through the buying and selling of allowance permits. Although this milestone in environmental regulation has had an immense impact in the reduction of sulfur dioxide in the atmosphere, the focus of this research is to study the determinants that will ultimately establish the spot price for allowances. Through the use of regression analysis this paper analyzes key commodities prices, economic indicators, and environmental factors that is believed to play a primary role in the determination of allowance prices.
Price Determinants of Sulfur Dioxide Market
Room C102, Center for Natural Sci ences, Illinois Wesleyan University
The introduction of the U.S. Sulfur Dioxide (SO2) cap and trade market in 1994 has provided a significant approach to mitigating the hazardous effects of acid rain. The merit of the cap and trade program is within the design of the program itself because the cap determines the total SO2 emission reduction, while the trading process determines which sources reduce their emission of SO2 through the buying and selling of allowance permits. Although this milestone in environmental regulation has had an immense impact in the reduction of sulfur dioxide in the atmosphere, the focus of this research is to study the determinants that will ultimately establish the spot price for allowances. Through the use of regression analysis this paper analyzes key commodities prices, economic indicators, and environmental factors that is believed to play a primary role in the determination of allowance prices.