Warehouse financing has emerged as one of the most promising financing approaches for small and medium-sized enterprises (SME). Its basic working mechanism is to transfer the company's assets to collaterals which are more acceptable by the banks. In this paper, we take the position of...

This report presents two series of studies performed before COP-6 and COP-6bis, in order to provide DG Environment with economic analysis of the issues at stake in international climate negotiations. These analysis used the background information provided by the large scale world energy partial...

The burgeoning development of the market-based institutions of wetland mitigation,carbon trading, and nutrient trading provides farmers with economic incentives in theform of payments for credits to change land use practices. Payments are made to thefarmer based on the number of credits...

This paper investigates incentives for firms to increase output above the activity level thresholds (ALTs) in order to obtain more free allowances in the EU Emissions Trading Scheme. While ALTs were introduced in order to reduce excess free allocation to low-activity installations, for...

An auction of carbon permits is the best way to achieve carbon caps set by international negotiation to limit global climate change. To minimize administrative costs, permits would be required at the level of oil refineries, natural gas pipe lines, liquid sellers, and coal processing plants. To...

This paper analyzes the market microstructure of the European Climate Exchange, the largest EU ETS trading venue. The ECX captures 2/3 of the screen traded market in EUA and more than 90% in CER. Trading volumes are active, with EUA volume doubling in 2009. Spreads range from € 0.02 to €...

Cost effective policies allow minimising the compliance costs associated to reaching a desired environmental quality target. In this paper a conceptual model has been developed to examine the compliance costs under an intra-plant emission trading system for a non-uniformly mixed assimilative...

This paper addresses the impact of the CO<SUB align="right"><SMALL>2</SMALL></SUB> opportunity cost on the wholesale electricity price in the context of the Iberian electricity market (MIBEL), namely on the Portuguese system, for the period corresponding to the Phase II of the European Union Emission Trading Scheme (EU ETS). In the...</small></sub>

The decarbonisation of electricity generation presents policy-makers in many countries with the delicate task of balancing initiatives for technological change whilst maintaining a commitment to market liberalisation. Despite the theoretical attractions, it has become debatable whether carbon...

Carbon markets devolve governance to external institutions and displace power from sovereign states. Major producers in these markets, notably China, have expressed concern about the adverse implications for national interests and sovereignty associated with selling off the rights to emit carbon...