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We examine the pattern of allowance trades in the European Union Emissions Trading System (EU ETS) using highly disaggregated trading data and identify a significant and robust home market bias. Our results point to informational transactions costs that increase when trading across national...
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. Longer-run, conversion could boost competition among exchanges. Using data from twelve European exchanges during 1998 and … results are strongly consistent with the hypothesis that euro conversion boosted competition for order flow among the …
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