EU ETS Facets in the Net: How Account Types Influence the Structure of the System

38 Pages Posted: 7 Mar 2016

See all articles by Simone Borghesi

Simone Borghesi

University of Siena - Dept. of Political and International Sciences; European University Institute

Andrea Flori

Politecnico di Milano; Department of Management, Economics and Industrial Engineering

Date Written: March 2, 2016

Abstract

In this work, we investigate which countries have been more central during Phases I and II of the European Emission Trading Scheme (EU ETS) with respect to the different types of accounts operating in the system. We borrow a set of centrality measures from Network Theory's tools to describe how the structure of the system has evolved over time and to identify which countries have been in the core or in the periphery of the network. In doing this, we investigate by means of extensive partitions on the different types of accounts and transactions characterizing the EU ETS whether the role of intermediaries (approximated by Person Holding Accounts - PHAs) has affected the overall structure of the system. Preliminary findings over the period 2005-2012 suggest that PHAs have played a prominent role in the transaction of permits, heavily influencing the configuration of the system. This motivates further research on the impact of non-regulated entities in the EU ETS design.

Keywords: Emission Trading, EU ETS, European Union Transaction Log (EUTL) data, Account and Transaction Types, Network Analysis, Centrality Measures

JEL Classification: C45, D85, L14, Q48, Q54, Q58

Suggested Citation

Borghesi, Simone and Flori, Andrea, EU ETS Facets in the Net: How Account Types Influence the Structure of the System (March 2, 2016). FEEM Working Paper No. 008.2016, Available at SSRN: https://ssrn.com/abstract=2741004 or http://dx.doi.org/10.2139/ssrn.2741004

Simone Borghesi (Contact Author)

University of Siena - Dept. of Political and International Sciences ( email )

via Mattioli, 10
I-53100 Siena
Italy

European University Institute ( email )

Villa Schifanoia
133 via Bocaccio
Firenze (Florence), Tuscany 50014
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HOME PAGE: http://https://me.eui.eu/simone-borghesi

Andrea Flori

Politecnico di Milano ( email )

via Lambruschini 4/B
Milano, Italy 20156
Italy

Department of Management, Economics and Industrial Engineering ( email )

Via Lambruschini 4/B - building 26/b
Milano, 20156
Italy

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