Market shares and dominant market positions in the case of emissions trading

In the context of the fight against global warming, greenhouse gas emissions trading has become one of the most important instruments on both the global and the regional level. On the global level, the Kyoto Protocol and the related Marrakech Accords define a regulatory framework. On the regional level, the EU emissions trading scheme is the predominant system. These agreements create new markets for emission entitlements.

Such new markets inherently raise competitiveness issues, both as regards the introduction of the instrument
itself and within the emissions market. Regarding the first aspect one may fear that a player subject to a trading scheme may use the entitlement market to influence the product market in order to prevent new players from entering the market or to squeeze existing players out of the market.2 Discussing markets for airborne pollutants, Tietenberg argues that such fears are farfetched, as installations regulated with respect to a certain pollutant generally operate in different product markets.

Copyright: © Lexxion Verlagsgesellschaft mbH
Quelle: Issue 2/2007 (November 2007)
Seiten: 14
Preis inkl. MwSt.: € 16,00
Autor: Omar Scharifi

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