Portfolio diversification; benefits of investing in Carbon Markets from a New Zealand investor perspective

Date
2011
Authors
Koleini, Abbas
Supervisor
Tourani-Rad, Alireza
Item type
Thesis
Degree name
Master of Business
Journal Title
Journal ISSN
Volume Title
Publisher
Auckland University of Technology
Abstract

This study investigates the diversification opportunity for investing in carbon credits from a New Zealand investor’s perspective. Investment in carbon credits, a relatively new commodity, is considered an alternative form of investment. The selected model, one of four, for evaluating the diversification opportunity is Minimum Variance Portfolio Optimisation using the shrinkage method. Comparing resultsfor the period from January 2006 to January 2010 has shown more diversification in the portfolio with the carbon commodity,in comparison to the same portfolio without the carbon commodity(Carbon credit in Europe).

Description
Keywords
Portfolio diversification , Emission markets , Carbon markets , Minimum Variance Portfolio Optimisation , Shrinkage method , Investment
Source
DOI
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