As an alternative carbon pricing tool to carbon taxes, carbon emission trading systems (ETS) combine market incentives with policy targets. Inevitably, ETS markets are linked to domestic and international political environment. Yet, there is a lack of research on the relationship between...

Loss aversion is a core concept in prospect theory that refers to people's asymmetric attitudes with respect to gains and losses. More specifically, losses loom larger than gains. With the capability of loss aversion to explain economic phenomena, some of which are puzzling under expected...