Emission allowances: Difference between revisions

As [[Financial instrument|financial instruments]], emissions allowances are unusually susceptible to ''further'' government decree, which may at any time change their terms or eligibility for surrender, or abolish them altogether, as governments of different stripes wax and wane on how they feel about the environment. This is a lot less likely to happen to [[Debt security|bonds]] or [[Equity securities|stocks]]. The risk increases the further into the future you look, meaning that the emissions market tends to trade over a short time-horizon of no more than a year or two. On the other hand, the forward curve is pretty steep, making it an attractive product to finance if you know how.

== Documentation ==

==== Fraud, theft and tax ====

{{Commodity regulation}}

{{de minimis threshold capsule}}

{{sa}}

*[[De minimis threshold test]]

{{c|Emissions}}

{{ref}}