Improving liquidity in emission trading schemes
构建了一个基于买卖价差的排放交易市场模型，发现少数大交易者会扩大价差降低流动性，而增加参与者（包括衍生品交易者）能缓解这一问题，欧盟ETS从第一阶段到第二阶段的政策变化验证了该理论。
Abstract This paper constructs a model of an Emission Trading Scheme (ETS) market using bid‐ask spreads. We show that when such a market is dominated by a small number of traders with substantial market power, they tend to maximize their profits by widening bid‐ask spreads, thereby reducing market liquidity. We argue that adding more market participants, including derivatives traders, can alleviate this illiquidity problem. Policy changes at the European Union's ETS illustrate our theory, as the market significantly increased liquidity by enacting liquidity‐provision policies to attract more participants as it transitioned from Phase 1 to Phase 2.