Next Article in Journal
Coordinated Development Analysis of the “Resources-Environment-Ecology-Economy-Society” Complex System in China
Previous Article in Journal
Soil Seed Bank and Plant Community Development in Passive Restoration of Degraded Sandy Grasslands
Open AccessArticle

Covering Indirect Emissions Mitigates Market Power in Carbon Markets: The Case of South Korea

Korea Energy Economics Institute, Jongga-ro 405-11, Jung-gu, Ulsan 44543, Korea
*
Author to whom correspondence should be addressed.
Academic Editor: Giuseppe Ioppolo
Sustainability 2016, 8(6), 583; https://doi.org/10.3390/su8060583
Received: 30 March 2016 / Revised: 16 June 2016 / Accepted: 17 June 2016 / Published: 21 June 2016
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
One of the main concerns of policymakers regarding emissions trading markets is that some firms may well enjoy market power owing to their share of the emissions. This study shows that including indirect emissions within the coverage of an emissions trading scheme can help to reduce market power and thereby enhance social efficiency. In this study, the market concentration measured by the Herfindahl-Hirschman Index significantly drops after including indirect emissions in the South Korean emissions trading market. In addition, other market concentration measures are also considered to verify that the conclusion does not depend on the choice of concentration measures. View Full-Text
Keywords: carbon markets; indirect emissions; market power carbon markets; indirect emissions; market power
Show Figures

Figure 1

MDPI and ACS Style

Shim, S.; Lee, J. Covering Indirect Emissions Mitigates Market Power in Carbon Markets: The Case of South Korea. Sustainability 2016, 8, 583.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop