Factors Affecting the Carbon Emissions Quotas Pricing in the EU Emission Trading System

The undeniable climatic changes occurring in the world contributed to the awareness of the need for their regulation, thus various instruments of this regulation arose. One such instrument is the European Union Emissions Trade System - a system designed to encourage the reduction of greenhouse gas emissions into the atmosphere. The prices in this system are not fixed, only the amount of emissions is, therefore it is necessary to reveal what affects the changes in these prices. The study of this system, and in particular factors affecting the price of permits for emissions is the goal of this work. Within the framework of this research, devoted to finding the factors influencing the change in the price of emission permits, such problems as the development of an econometric model explaining price fluctuations and the identification of significant factors in the model were posed and solved. The study was carried out using regression analysis, which made it possible to determine the significance of factors with the help of ordinary least squares method. The main result achieved in the work is to identify the factors that determine the change in prices for emission allowances. The following conclusions can also be drawn from the study: events that form expectations significantly affect the prices of emission permits along with the production of renewable energy, while prices for natural resources have no influence.