This paper is a first attempt to empirically measure transaction costs – a composite of administrativecosts and trading costs – of firms in the European Union's CO2 Emissions Trading Scheme (EU ETS)during its trial phase (2005-2007). This analysis provides some evidence that transaction...

The Emissions Trading scheme now (January 2003) in prospect in the European Union is likely to be the first trans-national greenhouse gas emissions trading scheme in the world. With the participation of the European Economic Area [EEA] countries and with the forthcoming EU enlargement, 30...