Power generators and major industrial emitters rely on carbon price forecasts to understand whether it is worth pursuing investments that could decarbonise their businesses. If carbon forecasts prove to be too high then investors may pay too high a price, bringing forward investments when other opportunities could have made better returns on capital. On the flipside if carbon forecasts prove to be too low then investments may be delayed, and obligated emitters may find themselves paying a high price to meet future compliance needs.
An excellent text. Thank you for exploring that matter. I read the book in 2021 and was delighted. A very clearly written book about price prediction in the commodity market. As far as i know, it is the only book devoted to that topic.
Thanks JF. Appreciate the kind feedback :)