Union of Concerned Scientist has a climate economist in California, Jasmin Ansar. She recently posted on this subject - http://blog.ucsusa.org/pricing-carbon-pollution-a-historic-day-in-california/. I expect she'll have some interesting news today when the auction results are released. ...
Jasmin sent these headlines from the auction results yesterday:
Price $10.09. All of 2013 allowances sold, about 14% of 2015 allowances sold. The floor price was $10.
When asked, "Were you expecting a higher percentage of the second tranche to sell?" Jasmin responded "Yes - I think the 2015 vintage are going for a 'song' and I am somewhat surprised so few sold. I guess the uncertainty overwhelms the financial return of a real 5% return (the floor price of $10 goes up every year by inflation plus 5%)."