The aim of this paper is to study the volatility transmission between CO2 and energy markets. Specifically, the particular interest is to examine whether or not conditional volatility is transmitted across those markets since the start the EU ETS.

Since the United States

Tropical deforestation is responsible for 15-20% of total man-made emissions of greenhouse gases. In December 2007, at the international conference of Bali, the United Nations acknowledged that a viable solution to climate change must include a mechanism to limit deforestation and forest degradation.