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This study pioneers to investigate the impact of industry on the European Union carbon trading market based on network perspective. All the accounts in the European Union Emissions Trading System (EU ETS) are summarized at the industry level, and then the trading relationship between industries is constructed in the network layout. Based on this network, the centrality of each industry is measured—the industries of electricity, gas, steam and air conditioning supply (EGSAS), bank, broker, exchange, and wholesale trade excluding motor vehicles and motorcycles (WTEM) have higher centrality. Finally, the impact of industry on the evolution of networks is analyzed, Findings show that the financial intermediaries play important roles at the beginning of each phase, while their influences on the network will decrease as the market goes on. On the contrary, influences of some other industries like WTEM are gradually increasing. [ABSTRACT FROM AUTHOR]

Verified emissions announcements are the most influential events in the European Union emissions trading scheme (EU ETS); they reveal demand information and have a significant impact on the carbon market. The extant literature tends to focus on examining the impacts of these verification events on the prices of carbon allowances, while scholars barely discuss how trading behaviors react to the announcements. Moreover, most of the studies are carried out from a macroeconomic perspective. This paper fills this gap by analyzing the impacts of the verified emissions announcements on the comoves of trading behaviors and carbon prices in Phase I (2005–2007) and Phase II (2008–2012). Specifically, we construct GARCH models to investigate the events' heterogeneous influences in different periods, i.e., the complete periods, the announcement periods, the pre- and post-announcement periods. We observe that the verified emissions announcements boost the volume of compliance trading, particularly in Phase I. Furthermore, we show that the over-allocation of carbon allowances can be even more influential in disturbing the comoves than the verification events. Our microeconomic findings confirm the maturity of EU ETS in Phase II, exhibiting good agreement with the extant macroeconomic literature. [ABSTRACT FROM AUTHOR]