Competition between emission exchanges - A review of the European system

dc.contributorAalto Universityen
dc.contributorAalto-yliopistofi
dc.contributor.authorKemppainen, Ossi
dc.contributor.departmentDepartment of Economicsen
dc.contributor.departmentTaloustieteen laitosfi
dc.contributor.schoolKauppakorkeakoulufi
dc.contributor.schoolSchool of Economicsen
dc.date.accessioned2012-03-15T02:30:37Z
dc.date.available2012-03-15T02:30:37Z
dc.date.dateaccepted2011-12-20
dc.date.issued2011
dc.description.abstractThis thesis searches and evaluates the factors that determine the outcome of competition between European emissions exchanges trading different kinds of emissions allowances. Since the beginning of the scheme in 2005, various exchanges have listed these allowances as traded products offering different kinds contracts for them. Currently, one of these exchanges dominates the market by approximately 90% market share in all exchange traded emissions contracts. Classical theories on competition suggest that the market outcome is mostly determined by prices (the cost of trading), production costs and quantities. As allowance holders are allowed to trade anywhere at will, according to common theories they should trade where-ever it is the most inexpensive. Yet, traders also seek for high liquidity that ensures fast execution of orders. It seems like that the trader specific attributes might determine what different aspect she seeks from an exchange, and makes the choice accordingly. This might lead to a situation where some traders choose to use local exchanges as others find it more profitable to use international exchanges – often located in world financial centers – that might offer higher liquidity, wider product scope or greater trader heterogeneity.en
dc.ethesisid12761
dc.format.extent75
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/3460
dc.identifier.urnURN:NBN:fi:aalto-201203181686
dc.language.isoenen
dc.locationP1 I
dc.programme.majorEconomicsen
dc.programme.majorKansantaloustiedefi
dc.subject.heleconkansantaloustiede
dc.subject.heleconeconomics
dc.subject.heleconenergiatalous
dc.subject.heleconenergy economy
dc.subject.heleconympäristötalous
dc.subject.heleconenvironmental economics
dc.subject.heleconpäästökauppa
dc.subject.heleconemissions trading
dc.subject.keywordexchange competition
dc.subject.keywordemission exchange
dc.subject.keywordemission allowance
dc.subject.keywordemission permit
dc.subject.keywordEU ETS
dc.subject.keywordEuropean Union Emissions Trading Scheme
dc.subject.keywordEUA
dc.subject.keywordEuropean Union Allowance
dc.subject.keywordCER
dc.subject.keywordCertified Emission Reduction
dc.titleCompetition between emission exchanges - A review of the European systemen
dc.typeG2 Pro gradu, diplomityöfi
dc.type.dcmitypetexten
dc.type.ontasotMaster's thesisen
dc.type.ontasotPro gradu tutkielmafi
local.aalto.idthes12761
local.aalto.openaccessno
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