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A Network-Based Analysis of the European Emission Market

  • Andreas KarpfEmail author
  • Antoine MandelEmail author
  • Stefano BattistonEmail author
Conference paper
Part of the Springer Proceedings in Complexity book series (SPCOM)

Abstract

This paper analyses the European Emission Trading System (ETS) from a network perspective. It is shown that the network exhibits a strong core-periphery structure also reflected in the network formation process. Due to a lack of centralized market places, operators of installations which fall under the EU ETS regulations have to resort to local networks or financial intermediaries if they want to participate in the market. This undermines the central idea of the ETS to exploit marginal abatement costs.

Keywords

Clean Development Mechanism Emission Trading Emission Trading Scheme Marginal Abatement Cost Joint Implementation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgments

The authors acknowledge the support of the EU FP7 FET project SIMPOL.

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Université Paris 1 Panthéon-SorbonneCentre d’Économie de la Sorbonne/Paris School of EconomicsParisFrance
  2. 2.Université Paris 1 Panthéon-SorbonneCentre d’Économie de la SorbonneParisFrance
  3. 3.Department of Banking and FinanceUniversity of ZurichZurichSwitzerland

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