This paper investigates the endowment effect in the European Union Emissions Trading System (EU E... more This paper investigates the endowment effect in the European Union Emissions Trading System (EU ETS) over Phase II and Phase III using complete transaction records from the market. The results show that for most companies in both Phase II and Phase III, their WTA (willingness to accept)/WTP (willingness to pay) ratio is less than or equal to 1, signifying that there is an insubstantial degree of the endowment effect in the EU ETS. This challenges the results of a pioneering study and brings into light the need for a more rigorous study to re-examine the endowment effect in the carbon market.
This paper investigates the endowment effect in the European Union Emissions Trading System (EU E... more This paper investigates the endowment effect in the European Union Emissions Trading System (EU ETS) over Phase II and Phase III using complete transaction records from the market. The results show that for most companies in both Phase II and Phase III, their WTA (willingness to accept)/WTP (willingness to pay) ratio is less than or equal to 1, signifying that there is an insubstantial degree of the endowment effect in the EU ETS. This challenges the results of a pioneering study and brings into light the need for a more rigorous study to re-examine the endowment effect in the carbon market.
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Papers by Sophia Qin