Emissions trading in a network of linked markets
Year: 2014
Type: report
Abstract: In this article we construct a model to analyse permit markets which are connected by a network of links. A link between markets means that participants of one emissions trading system can use the permits of another. In a linked network of markets, domestic policy outcomes can be influenced by foreign regulators even without a direct link. We apply graph theory to study the dependencies between permit markets and develop a method to determine who can affect domestic emissions and prices. The results help to avoid unexpected interference with domestic policy outcomes and secure the effectiveness of climate change policies. JEL Classification: L14, F13, Q54, Q58, D41
Source: Työväentutkimus Vuosikirja
Author: Juha Itkonen
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Climate action
Open Access status: green
OpenAlex ID: W2241798125