Experimental investigation of laboratory markets for internationally tradable emission rights as application of the testbedding method
Dipl. Vw. Bodo Storm*
Duration: 2003 - 2004
The project has two objectives. First, against the background of a critical discussion of the testbedding method in the Magdeburg Experimental Laboratory (MaxLab), a computer-aided laboratory market for emission rights is to be created that is capable of reproducing stylised facts from previous emission rights experiments and investigating selected framing aspects. The second goal of the project is to create two internet-based markets based on the laboratory experiments in the MaxLab, each of which will reflect as accurately as possible the conditions to be expected for future emissions trading at state level within the framework of the Kyoto Protocol and the planned EU emissions trading system at company level. The high external validity of the Internet markets is intended to enable reliable conclusions to be drawn about the behaviour of the market players to be expected in reality.
Knowledge of the functioning of these Internet markets for emission rights could not only contribute to finding an optimal design, it would also allow potential players in such a market to familiarise themselves with the specific market mechanics.
* Otto von Guericke University of Magdeburg