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College of Law and Management Studies

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Browsing College of Law and Management Studies by SDG "SDG13"

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    Analysis of the dynamics of carbon pricing: the role of speculation in the Emissions Trading System (ETS)
    (2024) Isah, Kazeem Ovanero.; Adelakun, Ojo Johnson.
    Purpose – To align with the global goal of keeping the temperature rise to well below 2 degrees Celsius, a market-based policy initiative, the "Emissions Trading System (ETS)," is to mitigate climate change. However, the carbon allowances traded at the ETS are held and traded not only by polluting companies, but also emissions non-compliance financial firms. These financial firms though engage in speculation, there has not been any compelling evidence of the extent to which speculation matters in carbon pricing. To bridge this gap, this study is premised on three separate but related essays to: (i) determine the accurate framework for modelling the dynamics of carbon pricing; (ii) determine the extent to which speculation matters in the predictability of carbon pricing; and (iii) determine whether speculation undermines or benefits the emission reduction effect of carbon pricing. Methodology –We employ the GARCH-MIDAS econometric technique to test the hypothesis that an all-inclusive framework that reflects the emission compliance and emissions noncompliance dynamics of the ETS is the most accurate approach to modeling carbon prices. We also employ some verifiable econometric procedures to arrive at the Feasible Quasi Generalised Least Square (FQGLS) as the most appropriate estimator to address some of the biases in the predictability of carbon prices. Findings – A modeling framework that captures both emissions compliance and emissions noncompliance dynamics of the ETS is the most accurate to modeling carbon prices. We find that speculation is a good predictor of carbon prices. We find that both emission compliance and emission non-compliance dynamics of the carbon market matter for the emissions reduction effect of the ETS and for enhancing the accuracy of climate change forecasts. Research Contribution – The literature on emission trading has continued to ignore the speculative behavior of the emissions non-compliance firms in the ETS. As a result, we construct a composite news-based speculation index to simultaneously capture the emissions compliance and emissions non-compliance dynamics of the ETS in a single framework. We provide the literature with a data-driven framework upon which the predictive power of speculation is examined both in the predictability of carbon pricing and in the forecast of emission reductions.
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    Fleet decarbonisation for sustainable transport initiative: a case of V-Polizza.
    (2022) Ndawonde, Thandiswa Nkosingithandile.; Mbhele, Thokozani Patmond.
    Abstract available in PDF.
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    Sea-level rise and submerged land territory: a study of the legal establishment of substitute artificial islands to sustain statehood and maritime zones of small island developing states.
    (2024) Boshoff, Kyra Leah.; Surbun, Vishal.
    Climate change and its consequence of rising sea levels threaten the existence of many Small Island Developing States (SIDS) across the globe. Sea-levels are rising at an inordinate pace, and international law has not yet adapted to mitigate the effects thereof. SIDS are particularly vulnerable to the effects of sea-level rise as a result of their remote locations and low-lying island composition. As such, SIDS may become uninhabitable or wholly submerged within the century. Therefore, SIDS are currently fighting for survival physically and legally. The extinction of SIDS by way of rising sea levels is an eventuality we have not seen in international law, and as such, no precedent exists for this situation. A physical remedy exists for the survival of SIDS, including the creation of artificial islands to house their population so that they are more resilient to rising sea levels. However, this physical remedy does not account for the legal consequences of sea-level rise for SIDS under international law. Sea-level rise presents challenges for SIDS within international law that include (i) continuity of statehood, (ii) the maintenance of maritime zones and the outer limits thereof, and (iii) the use of artificial islands as substitute island territory. These three issues, transversing international law and the law of the sea, are the focal points of this study. These issues are analysed to determine whether SIDS may maintain their statehood and maritime zones despite submerging island territory. The study then examines the legality of using artificial islands to substitute submerged natural island territory. The study concludes by proposing a new negotiating text for a Convention that establishes substitute artificial islands in place of submerged or uninhabitable island territory and the maintenance of statehood and maritime zones despite rising sea levels. This recommendation is based upon the understanding that certainty and stability of SIDS in international law is in the interests of fairness and equity.