Arbeitspapier
Home country bias in international emissions trading: Evidence from the EU ETS
We examine the pattern of allowance trades in the European Union Emissions Trading System (EU ETS) using highly disaggregated trading data and identify a significant and robust home market bias. Our results point to informational transactions costs that increase when trading across national borders. The existing trade pattern in goods and services explains two thirds of the home bias, with the remainder due to other causes. Our finding suggests that firms make use of existing trade networks to overcome search costs in bilateral allowance trade. Since the home bias differs across firms, it follows that marginal abatement costs are not equalized across market participants of the EU ETS.
- Language
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Englisch
- Bibliographic citation
-
Series: WWZ Working Paper ; No. 2022/07
- Classification
-
Wirtschaft
Empirical Studies of Trade
Trade and Environment
Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
Climate; Natural Disasters and Their Management; Global Warming
Environmental Economics: Government Policy
- Subject
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Emission permit market
EU ETS
transactions costs
gravity model
home bias
- Event
-
Geistige Schöpfung
- (who)
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Hintermann, Beat
Ludwig, Markus
- Event
-
Veröffentlichung
- (who)
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University of Basel, Center of Business and Economics (WWZ)
- (where)
-
Basel
- (when)
-
2022
- DOI
-
doi:10.5451/unibas-ep90048
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hintermann, Beat
- Ludwig, Markus
- University of Basel, Center of Business and Economics (WWZ)
Time of origin
- 2022
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