Do Transaction Costs Influence Firm Trading Behaviour in the European Emissions Trading System?

Environmental and Resource Economics

Volumn 62, Issue 3, 2014, Pages 583-613

  Jaraitė Kažukauskė, Jūratė ^a   Kažukauskas, Andrius ^a  

^a UMEÅ UNIVERSITY   (Sweden)

Author keywords

Climate policy; Emissions trading; EU ETS; European Union; Firm level data; Trading behaviour; Transaction costs

Indexed keywords

COSTS; GAS EMISSIONS; INTERNATIONAL LAW; SEARCH ENGINES;

CLIMATE POLICY; EMISSIONS TRADING; EUROPEAN UNION; FIRM-LEVEL DATA; TRADING BEHAVIOUR; TRANSACTION COST;

COMMERCE;

EMISSIONS TRADING; EMPIRICAL ANALYSIS; ENVIRONMENTAL ECONOMICS; ENVIRONMENTAL POLICY; EUROPEAN UNION; FIRM SIZE; TRANSACTION COST;

EUROPE;

EID: 84946474212     PISSN: 09246460     EISSN: 15731502     Source Type: Journal    
DOI: 10.1007/s10640-014-9831-7     Document Type: Article

References (34)

1. Baumol WJ, Oates WE (1971) The use of standards and prices for protection of the environment. Swed J Econ 73(1):42–54
2. Burtraw D (1996) The $$\text{ SO }_{2}$$SO2 emissions trading program: cost savings without allowance trades. Contemp Econ Policy 14:79–94
3. Cason TN, Gangadharan L (2003) Transactions costs in tradable permit markets: an experimental study of pollution market designs. J Regul Econ 23:145–165
4. CEC (2008) Accompanying document to the proposal for a directive of the European Parliament and the Council amending Directive 2003/87/EC so as to improve and extend the EU greenhouse gas emission allowance trading system: Impact Assessment, Commission of the European Communities (CEC). Brussels
5. Chamberlain G (1984) Panel data. Handbook of econometrics, 2. Z. Griliches and M. D. Intriligator, Amsterdam
6. Coase RH (1960) The problem of social cost. J Law Econ 3:1–44
7. Cragg JG (1971) Some statistical models for limited dependent variables with application to the demand for durable goods. Econometrica 39:829–844
8. Dahlman CJ (1979) The problem of externality. J Law Econ 22:141–162
9. EEA (2006) Application of the emissions trading directive by EU Member States. EEA technical report 2/2006, European Environmental Agency. Copenhagen, Denmark
10. Ellerman AD, Convery FJ, de Perthuis C (2010) Pricing carbon: the European Union emissions trading scheme. Cambridge University Press, Cambridge
11. Ellerman AD, Trotingnon R (2009) Cross-border trading and borrowing in the EU ETS. Energy J 30:53–77
12. European Parliament and Council (2003) Directive 2003/87/EC of the European Parliament and the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC. Brussels
13. Gangadharan L (2000) Transaction costs in pollution markets: an empirical study. Land Econ 76:601–614
14. Hahn RW (1984) Market power and transferable property rights. Q J Econ 99(4):753–765
15. Hahn RW, Stavins RN (2011) The effect of allowance allocations on cap-and-trade system performance. J Law Econ 54:S267–S294
16. Heindl P (2012) Transaction costs and tradable permits: empirical evidence from the EU emissions trading scheme. Discussion paper 12–021, Centre for European Economic Research (ZEW). Mannheim, Germany
17. Jaraitė J, Convery FJ, Di Maria C (2010) Transaction costs for firms in the EU ETS: lessons from Ireland. Clim Policy 10:190–215
18. Jaraitė J, Kažukauskas A (2013) The profitability of electricity generating firms and policies promoting renewable energy. Energy Econ 40:858–865
19. Jaraitė J, Kažukauskas JT, Zaklan A, Zeitlberger A (2013) Matching EU ETS accounts to historical parent companies: a technical note. European University Institute, Florence. http://fsr.eui.eu/CPRU/EUTLTransactionData.aspx
20. Joskow PL, Schmalensee R, Bailey EM (1998) The market for sulfur dioxide emissions. Am Econ Rev 76:601–614
21. Kerr S, Maré DC (1998) Transaction costs and tradable permit markets: the United States Motu Economic and Public Policy Research draft manuscript. Wellington, New Zealand
22. Krutilla K, Krause R (2010) Transaction costs and environmental policy: an assessment framework and literature review. Int Rev Environ Resour Econ 4:261–354
23. McCann L, Colby B, Easter W, Kasterine A, Kuperan KV (2005) Transaction cost measurement for evaluating environmental policies. Ecol Econ 52:527–542
24. Montero J-P (1998) Marketable pollution permits with uncertainty and transaction costs. Resour Energy Econ 20:27–50
25. Montgomery W (1972) Markets in licenses and efficient pollution control programs. J Econ Theory 5:395–418
26. Mundlak Y (1978) On the pooling of time series and cross section data. Econometrica 46:69–85
27. Sandoff A, Schaad G (2009) Does EU ETS lead to emission reductions through trade? The case of the Swedish emissions trading sector participants. Energy Policy 37:3967–3977
28. Stavins RN (1995) Transaction costs and tradeable permits. J Environ Econ Manag 29:133–148
29. Tietenberg TH (1990) Economic instruments for environmental regulation. Oxf Rev Econ Policy 6:17–33
30. Tietenberg TH (2006) Emissions trading: principles and practice. Resources for the Future, Washington
31. Tobin J (1958) Estimation of relationships for limited dependent variables. Econometrica 26:24–36
32. Trotignon R, Delbosc A (2008) Allowance trading patterns during the EU ETS trail period: what does the CITL reveal? Climate report 13. Caisse des Depots, Mission Climat
33. Wooldridge JM (2010) Econometric analysis of cross section and panel data, 2nd edn. Massachusetts Institute of Technology, MIT Press, Cambridge
34. Zaklan A (2013) Why do emitters trade carbon permits? Firm-level evidence from the European Emission Trading Scheme. EUI working paper RSCAS 2013/19, EUI