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Transaction costs for firms in the EU ETS: lessons from Ireland
Until now, there has been little empirical evidence that EU Emissions Trading Scheme (ETS) transaction costs are incurred at firm level. The transaction costs (internal costs, capital costs, consultancy and trading costs) incurred by Irish firms under the EU ETS during its pilot phase (2005-2007) we...
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| Published in: | Climate policy 2010, Vol.10 (2), p.190-215 |
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| Format: | Article |
| Language: | English |
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| creator | JARAITĖ, JŪRATĖ CONVERY, FRANK DI MARIA, CORRADO |
| description | Until now, there has been little empirical evidence that EU Emissions Trading Scheme (ETS) transaction costs are incurred at firm level. The transaction costs (internal costs, capital costs, consultancy and trading costs) incurred by Irish firms under the EU ETS during its pilot phase (2005-2007) were measured and analysed. Evidence for the sources of transaction costs, their magnitude and the distribution of costs shows that these were mainly administrative in nature. Considerable variation in costs was found due to economies of scale, as the costs per tonne of CO
2
were lower for participants with larger allocations. For the largest firms-accounting for over half the emissions-average transaction costs were €0.05 per tonne. However, for small firms, average transaction costs were €2.02-over 18% of the current allowance price. This supports the concerns that transaction costs are excessive for smaller participants. The immediate policy implication is that additional attention will be needed to address different sizes of firms, number of installations per firm, and the size of the initial allocations. |
| doi_str_mv | 10.3763/cpol.2009.0659 |
| format | article |
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2
were lower for participants with larger allocations. For the largest firms-accounting for over half the emissions-average transaction costs were €0.05 per tonne. However, for small firms, average transaction costs were €2.02-over 18% of the current allowance price. This supports the concerns that transaction costs are excessive for smaller participants. The immediate policy implication is that additional attention will be needed to address different sizes of firms, number of installations per firm, and the size of the initial allocations.</description><identifier>ISSN: 1469-3062</identifier><identifier>ISSN: 1752-7457</identifier><identifier>EISSN: 1752-7457</identifier><identifier>DOI: 10.3763/cpol.2009.0659</identifier><language>eng</language><publisher>London: Taylor & Francis Group</publisher><subject>Accounting ; Allocations ; Business management ; Capital ; Capital costs ; Carbon emissions ; climate policy ; Commercial policy ; Consultancy services ; Cost analysis ; Cost control ; Costs ; coûts de transaction ; Economic models ; Economic theory ; Economies of scale ; Efficiency ; Emissions ; Emissions control ; Emissions trading ; Empirical analysis ; Enterprises ; Environmental policy ; European Union Emissions Trading Scheme ; Government-business relations ; Ireland ; Irlande ; Monitoring systems ; Policies ; politique climatique ; Price supports ; Quotas ; Studies ; Système d'échange européen de quotas d'émissions ; Taxonomy ; Transaction costs ; échange de quotas d'émissions</subject><ispartof>Climate policy, 2010, Vol.10 (2), p.190-215</ispartof><rights>Copyright Taylor & Francis Group, LLC 2010</rights><rights>Copyright Earthscan 2010</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c448t-e737bebced2fdde0e9a783d9ec9e98651857cc5538de582d38f9e711440d18b13</citedby><cites>FETCH-LOGICAL-c448t-e737bebced2fdde0e9a783d9ec9e98651857cc5538de582d38f9e711440d18b13</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.proquest.com/docview/213831864/fulltextPDF?pq-origsite=primo$$EPDF$$P50$$Gproquest$$H</linktopdf><linktohtml>$$Uhttps://www.proquest.com/docview/213831864?pq-origsite=primo$$EHTML$$P50$$Gproquest$$H</linktohtml><link.rule.ids>230,314,780,784,885,4022,11687,12846,21386,21393,27865,27922,27923,27924,33222,33223,33610,33611,33984,33985,36059,36060,43732,43947,44362,73992,74239,74666</link.rule.ids><backlink>$$Uhttps://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-94626$$DView record from Swedish Publication Index$$Hfree_for_read</backlink></links><search><creatorcontrib>JARAITĖ, JŪRATĖ</creatorcontrib><creatorcontrib>CONVERY, FRANK</creatorcontrib><creatorcontrib>DI MARIA, CORRADO</creatorcontrib><title>Transaction costs for firms in the EU ETS: lessons from Ireland</title><title>Climate policy</title><description>Until now, there has been little empirical evidence that EU Emissions Trading Scheme (ETS) transaction costs are incurred at firm level. The transaction costs (internal costs, capital costs, consultancy and trading costs) incurred by Irish firms under the EU ETS during its pilot phase (2005-2007) were measured and analysed. Evidence for the sources of transaction costs, their magnitude and the distribution of costs shows that these were mainly administrative in nature. Considerable variation in costs was found due to economies of scale, as the costs per tonne of CO
2
were lower for participants with larger allocations. For the largest firms-accounting for over half the emissions-average transaction costs were €0.05 per tonne. However, for small firms, average transaction costs were €2.02-over 18% of the current allowance price. This supports the concerns that transaction costs are excessive for smaller participants. The immediate policy implication is that additional attention will be needed to address different sizes of firms, number of installations per firm, and the size of the initial allocations.</description><subject>Accounting</subject><subject>Allocations</subject><subject>Business management</subject><subject>Capital</subject><subject>Capital costs</subject><subject>Carbon emissions</subject><subject>climate policy</subject><subject>Commercial policy</subject><subject>Consultancy services</subject><subject>Cost analysis</subject><subject>Cost control</subject><subject>Costs</subject><subject>coûts de transaction</subject><subject>Economic models</subject><subject>Economic theory</subject><subject>Economies of scale</subject><subject>Efficiency</subject><subject>Emissions</subject><subject>Emissions control</subject><subject>Emissions trading</subject><subject>Empirical analysis</subject><subject>Enterprises</subject><subject>Environmental policy</subject><subject>European Union Emissions Trading Scheme</subject><subject>Government-business relations</subject><subject>Ireland</subject><subject>Irlande</subject><subject>Monitoring systems</subject><subject>Policies</subject><subject>politique climatique</subject><subject>Price supports</subject><subject>Quotas</subject><subject>Studies</subject><subject>Système d'échange européen de quotas d'émissions</subject><subject>Taxonomy</subject><subject>Transaction costs</subject><subject>échange de quotas 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The transaction costs (internal costs, capital costs, consultancy and trading costs) incurred by Irish firms under the EU ETS during its pilot phase (2005-2007) were measured and analysed. Evidence for the sources of transaction costs, their magnitude and the distribution of costs shows that these were mainly administrative in nature. Considerable variation in costs was found due to economies of scale, as the costs per tonne of CO
2
were lower for participants with larger allocations. For the largest firms-accounting for over half the emissions-average transaction costs were €0.05 per tonne. However, for small firms, average transaction costs were €2.02-over 18% of the current allowance price. This supports the concerns that transaction costs are excessive for smaller participants. The immediate policy implication is that additional attention will be needed to address different sizes of firms, number of installations per firm, and the size of the initial allocations.</abstract><cop>London</cop><pub>Taylor & Francis Group</pub><doi>10.3763/cpol.2009.0659</doi><tpages>26</tpages></addata></record> |
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| subjects | Accounting Allocations Business management Capital Capital costs Carbon emissions climate policy Commercial policy Consultancy services Cost analysis Cost control Costs coûts de transaction Economic models Economic theory Economies of scale Efficiency Emissions Emissions control Emissions trading Empirical analysis Enterprises Environmental policy European Union Emissions Trading Scheme Government-business relations Ireland Irlande Monitoring systems Policies politique climatique Price supports Quotas Studies Système d'échange européen de quotas d'émissions Taxonomy Transaction costs échange de quotas d'émissions |
| title | Transaction costs for firms in the EU ETS: lessons from Ireland |
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