An Endowment Effect Study in the European Union Emission Trading Market based on Trading Price and Price Fluctuation

doi:10.3390/ijerph17093343

CASISD OpenIR

	An Endowment Effect Study in the European Union Emission Trading Market based on Trading Price and Price Fluctuation
	Wang, Jiqiang; Gu, Fu; Liu, Yingpeng; Fan, Ying; Guo, Jianfeng
发表期刊	INTERNATIONAL JOURNAL OF ENVIRONMENTAL RESEARCH AND PUBLIC HEALTH
摘要	This paper pioneers to investigate the endowment effect in the European Union mission Trading Scheme (EU ETS) as well as the impacts of trading experience and compliance pressure on the endowment effect. This study is based on the complete transaction records of the market. In the data set, the records of two consecutive reverse transactions from a same emitting company are selected. The lowest price that the buyer is willing to pay (WTP) and the maximum price the seller is willing to accept (WTA) are evaluated by excluding their risk cost that is used to avoid short-term fluctuations in the price. By distinguishing the difference between WTA and WTP, and long-term fluctuations in the prices during the two transactions, the trader's endowment effect can be quantitively assessed. The results show that the degree of endowment effect of traders follows the trading experience. In addition, since the EU ETS is a cap-and-trade market, the traders face different levels of compliance pressure; when the pressure of the emission companies increases, the degree of endowment effect will also decrease.
	2020
卷号	17
DOI	10.3390/ijerph17093343
语种	英语
引用统计
文献类型	期刊论文
条目标识符	http://ir.casisd.cn/handle/190111/9780
专题	中国科学院科技战略咨询研究院智库建设研究部
推荐引用方式 GB/T 7714	Wang, Jiqiang,Gu, Fu,Liu, Yingpeng,et al. An Endowment Effect Study in the European Union Emission Trading Market based on Trading Price and Price Fluctuation[J]. INTERNATIONAL JOURNAL OF ENVIRONMENTAL RESEARCH AND PUBLIC HEALTH,2020,17.
APA	Wang, Jiqiang,Gu, Fu,Liu, Yingpeng,Fan, Ying,&Guo, Jianfeng.(2020).An Endowment Effect Study in the European Union Emission Trading Market based on Trading Price and Price Fluctuation.INTERNATIONAL JOURNAL OF ENVIRONMENTAL RESEARCH AND PUBLIC HEALTH,17.
MLA	Wang, Jiqiang,et al."An Endowment Effect Study in the European Union Emission Trading Market based on Trading Price and Price Fluctuation".INTERNATIONAL JOURNAL OF ENVIRONMENTAL RESEARCH AND PUBLIC HEALTH 17(2020).