Market Power in Output and Emissions Trading

Hot Air and Market Power in Internation Emissions Trading

In respect to carbon emission targets set in the Kyoto Protocol in 1997, emission quotas trading will be implemented among the Annex-B participating countries to lower the mitigation costs of the international cooperation on climate change issue. Nonetheless, in the way the market was designed, the States of the Former Soviet Union and Eastern Europe are likely to become large sellers of carbon...

Can Auctions Control Market Power in Emissions Trading Markets?

Department of Economics Working Paper Series Can Auctions Control Market Power in Emissions Trading Markets? Can Auctions Control Market Power in Emissions Trading Markets?

Using eight sessions (twenty-four ten-period markets) in a double ABA cross-over design, we demonstrate clear evidence of market power in double-auction emission trading markets (agents who are not constrained to only buy or sell). Conventional theory predicts that in half of the market-power environments monopsony should emerge and in half monopoly should emerge. Market-power outcomes are freq...

Market Power in International Emissions Trading: The Impacts of U.S.Withdrawal from the Kyoto Protocol

This paper investigates the implications of U.S. withdrawal on environmental effectiveness, economic efficiency, and the distribution of compliance costs taking into account market power of the Former Soviet Union (FSU) on emission permit markets. While exercise of market power on behalf of FSU under U.S. compliance has no environmental impact as compared to competitive permit trade, it prevent...

Intelligent trading agent for power trading through tariff market

The master thesis describes an intelligent agent developed for power trading in the tar-iff market. First, the theoretical background related to the motivation for switching fromtraditional grids to Smart Grids is presented. The thesis continues with the simulation plat-forms for agents and the key implications of real-world tariff design and principles. Lastly,the complete arch...