OUTLOOK FOR SO_2 ALLOWANCE PRICES: ARE HIGHER PRICES HERE TO STAY?

摘要

Over the last several months, high prices for natural gas and oil have grabbed most of the headlines in the energy markets. However, SO_2 emission allowance prices have also increased quite steeply, rising from approximately 700 dollars/ton at the beginning of 2005 to a peak of about 1,600 dollars /ton as of mid-December 2005 before falling to about 1,000 dollars /ton as of mid-February 2006 (See Figure 1). Over a longer time horizon, the rate of increase in SO_2 allowance prices has been even greater, since SO_2 allowance prices averaged less than 200 dollars /ton during 2003.