 Transaction costs for firms in the EU ETS: lessons from IrelandJūratė Jaraite-Kažukauskė, Frank Convery and Corrado Di Maria Climate Policy, 2010, vol. 10, issue 2, 190-215 Abstract: 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. Date: 2010 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:tcpoxx:v:10:y:2010:i:2:p:190-215 Ordering information: This journal article can be ordered from Access Statistics for this article Climate Policy is currently edited by Professor Michael Grubb More articles in Climate Policy from Taylor & Francis Journals |
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