Potential anti-competitive effects of emission permit markets – A survey on theoretical findings and evidence

2013 ◽  
Vol 64 (3) ◽  
Author(s):  
Johanna Reichenbach ◽  
Till Requate
Keyword(s):  
Market Power ◽  
Pollution Control ◽  
Emissions Trading ◽  
Emission Trading ◽  
Competitive Effects ◽  
Market Abuse ◽  
Competitive Disadvantage ◽  
Output Market ◽  
Emission Permit Markets ◽  
Power Utilities

AbstractEmissions trading has been established as an important instrument of pollution control in many world regions. However concerns have been raised whether or not emission-trading schemes may distort competition either on the permit market itself or on related output markets. In this paper we review tradable emission-allowance schemes with special reference to anti-competitive effects. Such distortions may be caused by large firms exercising market power on the allowance market by holding down supply or suppressing demand in order to manipulate prices to their advantage. Firms may also try to abuse the allowance market to put other firms, with whom they compete on the output market, at a competitive disadvantage. Further distortions and abuses may be caused by special or ill-defined rules on the allowance market or other markets. In this paper we survey theoretical insights on potential anti-comptitive effects of emissions trading and also provide some empirical evidence for market power abuses on auctioned and grandfathered allowance markets with a particular focus on the (alleged) allowance market abuse by power utilities in Germany and California.

scholarly journals Market Power in Output and Emissions Trading

Games ◽  
2020 ◽  
Vol 11 (4) ◽  
pp. 43
Author(s):  
Francisco J. André ◽  
Luis Miguel de Castro
Keyword(s):  
Market Power ◽  
Emissions Trading ◽  
Strategic Behavior ◽  
Cournot Model ◽  
Ceteris Paribus ◽  
Dominant Firm ◽  
Initial Allocation ◽  
Permit Price ◽  
Permit Allocation ◽  
Output Market

This article focuses on the strategic behavior of firms in the output and the emissions markets in the presence of market power. We consider the existence of a dominant firm in the permit market and different structures in the output market, including Cournot and two versions of the Stackelberg model, depending on whether the permit dominant firm is a leader or a follower in the output market. In all three models, the firm that dominates the permit market is more sensitive to its initial allocation than its competitor in terms of abatement and less sensitive in terms of output. In all three models, output is decreasing and the permit price is increasing in the permit dominant firm’s initial allocation. In the Cournot model, permit dominance is fruitless in terms of output and profit if the initial allocation is symmetric. Output leadership is more relevant than permit dominance since an output leader always tends to, ceteris paribus, produce more and make more profit whether it also dominates the permit market or not. This leadership can only be overcompensated for by distributing a larger share of permits to the output follower, and only if the total number of permits is large enough. In terms of welfare, Stackelberg is always superior to Cournot. If the initial permit allocation is symmetric, welfare is higher when the same firm dominates the output and the permit market at the same time.

Datenbasierte Marktmacht in der europäischen Fusionskontrolle

2021 ◽  
Author(s):  
Julian Heim
Keyword(s):  
Artificial Intelligence ◽  
Market Power ◽  
Data Protection ◽  
Business Models ◽  
Antitrust Law ◽  
Competitive Effects ◽  
The Core ◽  
Technical Developments ◽  
Access To Data

Data is the core of Internet-based business models. Ever since Facebook took over WhatsApp, European antitrust law has been faced with the question of how to deal with mergers, especially those involving the well-known Internet giants ("FANG"). Under what circumstances can market power be based as a prohibition criterion on the possession of and access to data? What competitive effects of data-based market power are to be feared in horizontal, vertical and conglomerate mergers? How can any commitments remedy this form of market power? The work takes into account technical developments such as artificial intelligence as well as data protection aspects.

Toward a Distributed Carbon Ledger for Carbon Emissions Trading and Accounting for Corporate Carbon Management

2019 ◽  
Vol 16 (1) ◽  
pp. 37-46 ◽  
Author(s):  
Qingliang Tang ◽  
Lie Ming Tang
Keyword(s):  
Asset Management ◽  
Emissions Trading ◽  
Conflicts Of Interest ◽  
Ghg Emissions ◽  
Emission Trading ◽  
Accounting System ◽  
Carbon Emissions Trading ◽  
For Profit ◽  
Blockchain Technology ◽  
Single Mechanism

ABSTRACT Greenhouse gas (GHG) emissions control requires coordinated efforts and collaboration at all levels of governmental bodies, non-for-profit organizations, and private sectors. However, the target is difficult to achieve due to challenges arising from conflicts of interest and lack of trust between stakeholders. Thus, we propose a distributed carbon ledger (DCL) system using blockchain technology. Our analysis suggests that the adoption of DCL not only strengthens the corporate accounting system for carbon asset management but also fits within existing market-based emissions trading schemes (ETSs). Blockchain-enabled DCL allows the integration of national emission trading schemes (ETSs) and corporate carbon asset management into a synthetic single mechanism. JEL Classifications: M41; O44.

Global Problem—Regional Solution? International Law Reflections on an EU CO2 Emissions Trading Scheme for Ships

2011 ◽  
Vol 26 (4) ◽  
pp. 613-641 ◽  
Author(s):  
Henrik Ringbom
Keyword(s):  
European Union ◽  
International Law ◽  
Co2 Emissions ◽  
Emissions Trading ◽  
Emission Trading ◽  
Law Of The Sea ◽  
Emission Trading Scheme ◽  
Global Problem ◽  
Emissions Trading Scheme ◽  
Trading Scheme

AbstractInternational law questions linked to a potential future European Union ‘emission trading scheme’ for shipping are addressed. If such a scheme were to be introduced (which is not yet clear), and if it were designed to cover emissions that have occurred beyond the territorial waters of the Member States or even in other States’ maritime zones (which, in that case, seems likely), it would evoke interesting questions of principle relating to the jurisdiction of States to impose requirements on foreign ships for matters which take place beyond their territory. Different approaches to the question are discussed, starting from the law of the sea, but also including a brief review of other potentially relevant branches of international law. It is concluded that international law does not necessarily prevent the establishment of such a scheme, but places a number of important limitations on its design.

scholarly journals Does an Emissions Trading Policy Improve Environmental Efficiency? Evidence from China

2020 ◽  
Vol 12 (6) ◽  
pp. 2165 ◽  
Author(s):  
Yifei Zhang ◽  
Sheng Li ◽  
Fang Zhang
Keyword(s):  
Panel Data ◽  
Pollution Control ◽  
Emissions Trading ◽  
Environmental Efficiency ◽  
Data Envelopment ◽  
Pilot Projects ◽  
Trading System ◽  
The Impact ◽  
Efficiency Indicators ◽  
Emissions Trading System

An emissions trading system is a market instrument for pollution control that has been used in China for many years. The Ministry of Environmental Protection of China has approved the implementation of emissions trading pilot projects in 11 provinces since 2007, yet the effectiveness of the policy has not been comprehensively estimated. With panel data from 29 provinces and cities in China between 2003 and 2012, this study uses the data envelopment model-slack based measurement (DEA-SBM) method to measure environmental efficiency indicators and a difference in difference (DID) model to examine the impact of the emissions trading system on environmental efficiency. The results indicate that the policy has significantly improved environmental efficiency in the pilot provinces. However, the effects are heterogeneous with different efficiency levels across the diverse regions. Higher impacts were found in the central and western regions. Some suggestions for the optimization of the emissions trading system are suggested in this study.

Impacts of Emission Trading on Optimal Bidding Strategies of Generation Companies in Day-Ahead Electricity Markets

2014 ◽  
Vol 521 ◽  
pp. 476-479 ◽  
Author(s):  
Guo Zhong Liu
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Emissions Trading ◽  
Emission Trading ◽  
Distribution Functions ◽  
Bidding Strategy ◽  
Chance Constrained Programming ◽  
Optimization Approach ◽  
Generation Company ◽  
Optimal Bidding

The impacts of Emission trading on building the optimal bidding strategy for a generation company participating in a day-ahead electricity market is investigated. The CO2 emission price in an emissions trading market is evaluated by using an optimization approach similar to the well-developed probabilistic production simulation method. Then upon the assumption that the probability distribution functions of rivals bidding are known, a stochastic optimization model for building the risk-constrained optimal bidding strategy for the generation company in the framework of the chance-constrained programming is presented. Finally, a numerical example is served for demonstrating the feasibility of the developed model and method, and the optimal bidding results are compared for the two situations with and without the CO2 emissions trading.

Design and Analysis of the Management System of Emissions Trading Based on Web

2013 ◽  
Vol 295-298 ◽  
pp. 1659-1662
Author(s):  
Fan Long Kong ◽  
Min Xi ◽  
Yue Li ◽  
Fan Ting Kong ◽  
Wan Chen
Keyword(s):  
Emissions Trading ◽  
Strong Support ◽  
Emission Trading ◽  
Advanced Technology ◽  
Social Benefits ◽  
Emission Trading System ◽  
Trading System ◽  
Detail Design ◽  
Design Ideas ◽  
Trading Program

The emissions trading has significant environmental, economic and social benefits, and so far, China already has the foundation for implementation. Combied with the development of the current information technology and application level, this paper proposes a set of Emission Trading System and Functional Analysis of design ideas. The system starts from Platform Analysis, selects a reasonable and effective advanced technology solutions (.Net + Mysql + GPRS), owns a detail design of the data flow and emissions trading program. It also layouts a number of subsystems in function, which focus on emissions trading functions. Finally, it provides a better systematic implementation of emissions trading platform and strong support for the implementation of security.

scholarly journals The Origins and Practice of Emissions Trading

2002 ◽  
Vol 14 (3) ◽  
pp. 293-320 ◽  
Author(s):  
Hugh S. Gorman ◽  
Barry D. Solomon
Keyword(s):  
Pollution Control ◽  
Emissions Trading ◽  
Effective Means ◽  
Control Policy ◽  
Cost Effective ◽  
Quality Standards ◽  
Shared Environment ◽  
Technological Infrastructure ◽  
Policy Tool ◽  
Pollution Control Policy

An important development in the field of environmental policy has been the growing acceptance and use of emissions trading as a cost-effective means to meet and maintain environmental quality standards. In the first half of the twentieth century, emissions trading programs not only would have been seen as unnecessary; they would have been inconceivable. The legal, bureaucratic, and technological infrastructure necessary to support such systems simply did not exist. Furthermore, most people did not see the release of pollutioncausing contaminants into the shared environment as transactions to be measured and monitored. Today, the use of emissions trading programs as a policy tool both reflects and represents the dramatic changes in pollution control policy that have since occurred.

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