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The European Emission Trading Scheme: A Market Perspective

Rausing, Karl and Lundkvist, Otto (2006)
Department of Business Administration
Abstract
The purpose of this thesis is to bring insight into and understanding of how the market for emission rights in Europe currently works and what problems it is currently facing. The research can be said to be based on positive theory, in the sense that it is grounded more on empirical theory on the subject than normative theory. Furthermore, a qualitative approach to generating data has been used. This has led to a pattern mode of explanation, where understanding a unique and complex field is the focus. The theoretical perspective utilized in this thesis is mainly based on empirical research on similar market-based systems for emission control. Interviews have been conducted with representatives of the important intermediaries and analysts... (More)
The purpose of this thesis is to bring insight into and understanding of how the market for emission rights in Europe currently works and what problems it is currently facing. The research can be said to be based on positive theory, in the sense that it is grounded more on empirical theory on the subject than normative theory. Furthermore, a qualitative approach to generating data has been used. This has led to a pattern mode of explanation, where understanding a unique and complex field is the focus. The theoretical perspective utilized in this thesis is mainly based on empirical research on similar market-based systems for emission control. Interviews have been conducted with representatives of the important intermediaries and analysts involved in the European market for emission allowances. In addition, reports, documents and market data have been used. The results of this study indicate that the market is surprisingly healthy for such a new system. However, regulatory issues are a major source of uncertainty. Liquidity and transparency are burdened by the large proportion of trade that takes place outside the exchanges. It cannot be ruled out that powerful companies can influence prices on the market. (Less)
Please use this url to cite or link to this publication:
author
Rausing, Karl and Lundkvist, Otto
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
EU ETS, emission rights, EUA, emission markets, pricing, Management of enterprises, Företagsledning, management
language
Swedish
id
1349844
date added to LUP
2006-01-16
date last changed
2012-04-02 15:45:08
@misc{1349844,
  abstract     = {The purpose of this thesis is to bring insight into and understanding of how the market for emission rights in Europe currently works and what problems it is currently facing. The research can be said to be based on positive theory, in the sense that it is grounded more on empirical theory on the subject than normative theory. Furthermore, a qualitative approach to generating data has been used. This has led to a pattern mode of explanation, where understanding a unique and complex field is the focus. The theoretical perspective utilized in this thesis is mainly based on empirical research on similar market-based systems for emission control. Interviews have been conducted with representatives of the important intermediaries and analysts involved in the European market for emission allowances. In addition, reports, documents and market data have been used. The results of this study indicate that the market is surprisingly healthy for such a new system. However, regulatory issues are a major source of uncertainty. Liquidity and transparency are burdened by the large proportion of trade that takes place outside the exchanges. It cannot be ruled out that powerful companies can influence prices on the market.},
  author       = {Rausing, Karl and Lundkvist, Otto},
  keyword      = {EU ETS,emission rights,EUA,emission markets,pricing,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {The European Emission Trading Scheme: A Market Perspective},
  year         = {2006},
}