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Understanding business participation in UK emissions trading: dimensions of choice and influences on market development

In: Emissions Trading

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  • Michael Nye

    (University of East Anglia)

Abstract

This research explores resource and capacity-based linkages between the choice to become involved in emissions trading and the development of an emissions market. The analysis is based on semi-structured interviews with key corporate participants in the UK emissions trading scheme (ETS). Analysis of interview data reveals that the development of an emissions market can be linked to the ability of firms to make an informed participation decision that take account of the interdependent dimensions of emissions trading. The paper concludes that the thin UK ETS market is as much a product of utility maximisation as it is of ad-hoc decision- making, fears of non-compliance and poor organisational capacities for managing trading.

Suggested Citation

  • Michael Nye, 2008. "Understanding business participation in UK emissions trading: dimensions of choice and influences on market development," Springer Books, in: Ralf Antes & Bernd Hansjürgens & Peter Letmathe (ed.), Emissions Trading, pages 235-249, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-73653-2_15
    DOI: 10.1007/978-0-387-73653-2_15
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    Keywords

    Emissions trading; emissions markets;

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