Market-Based Responses to Climate Change: CO₂Market Design versus Operation

Abstract

This study highlights significant discrepancies between CO 2 market design and the actual operation of CO 2 markets. Our findings are based upon an empirical investigation undertaken in the context of the European Emissions Trading Scheme between January 2009 and May 2010. CO 2 markets are examined from a practicebased perspective in which actors are engaged in exchange, representational and normalizing practices. Discrepancies between the actual and intended CO 2 market practices are explained using the concepts of framing, overflowing and regulatory capture. We argue that the design of the European Emissions Trading Scheme has been influenced in such a way that it does not actually challenge market participants to reduce their CO 2 emissions. In this way, the study challenges the near universal reliance upon CO 2 markets as the primary policy mechanism for mitigating climate change.

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Offset Credits in the EU ETS: A Quantile Estimation of Firm-Level Transaction Costs

“…Veal and Mouzas, 2012). As the nal transaction is virtually cost-free, transaction costs are in this context largely due to upfront costs of information procurement.…”

From Iran: Does Improvement in Corporate Environmental Performance Affect Corporate Risk Taking?

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