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On the Endogeneity of Market Power in Emissions Markets

机译:排放市场中市场力量的内生性

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摘要

Previous approaches on market power in emissions trading markets rely on the existence of a subset of competitive players. In this paper, I relax this assumption and treat market power as an endogenous concept which depends on the initial allocation of allowances. All parties realize their potential influence on the market price. This approach allows a clear comparative statics analysis of the impact of the allowance allocation on the efficiency of markets. I provide specific examples that illustrate the implications that stem from the proposed modeling approach relative to previous models.
机译:排放交易市场中先前的市场支配力方法依赖于一部分竞争参与者的存在。在本文中,我放宽了这一假设,并将市场支配力视为内生性概念,这取决于配额的初始分配。各方都意识到了其对市场价格的潜在影响。这种方法可以对配额分配对市场效率的影响进行清晰的比较静态分析。我提供了一些具体示例,说明了相对于以前的模型,所提出的建模方法所产生的影响。

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