Do transaction costs influence firm trading behaviourin the European emissions trading system?
2015 (English)In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 62, no 3, 583-613 p.Article in journal (Refereed) Published
This study is one of the first to empirically investigate firm trading behaviour and the importance of permit trading transaction costs, such as information costs and search costs, in the first phase of the European Union’s Emissions Trading System (EU ETS). The signs and significance of our constructed transaction costs proxy variables indicate for a presence of these costs in the initial years of the EU ETS. In particular, this paper shows that ETS firms with the smaller number of installations and with less trading experience were less likely to participate in the European emissions trading market and traded the lower quantities of permits. Furthermore, these firms chose to trade permits indirectly via third parties. This study also supports the concerns that transaction costs could be excessive for smaller participants and firms operating in the new EU member states.
Place, publisher, year, edition, pages
Springer-Verlag New York, 2015. Vol. 62, no 3, 583-613 p.
Climate policy, Emissions trading, EU ETS, European Union, Firm-level data, Trading behaviour, Transaction costs
IdentifiersURN: urn:nbn:se:umu:diva-94625DOI: 10.1007/s10640-014-9831-7ISI: 000364221800009OAI: oai:DiVA.org:umu-94625DiVA: diva2:755216
Published online 9 October 2014.2014-10-142014-10-142015-12-02Bibliographically approved