The strategic implications of implementing the transport sector into the EU-ETS: A study of the market and organizational based difficulties with a transport sector based emission trading scheme

Martin Elboth Jørgensen & Gregers Inselmann

Student thesis: Master thesis


Prior to this thesis it was interesting to stumble upon the fact that the transport sector is not fully included in the EU-ETS, except aviation and water based transport. This caused for the desire as to seek to elucidate which consequences it would have, if the road based freight transport was too be included as well, as such distinction were deemed yet untreated. The approach as to elucidate this problematic was first conducted through analyzing the current environmental regulatory state of the market, followed by a definition of the environmental challenge being the reduction of CO2. Additionally this state of market has been framed, as to outline the different mechanism provided by the market, in order to secure that environmental optimization occurs. Subsequent the focus was turned towards the internal and external factors that could be seen of importance, for the organization to consider, as to obtain higher adaptability for environmental optimization. The extent to which the active company-customer relationship affects this adaptability was eventually added in the analysis. The findings of this thesis, cannot be seen as a conclusive answer as to what needs be conducted if the EU-ETS should also encompass the road based freight transport, as it the EU-ETS should not necessarily be view as the only opportunity as to enforce environmental regulations upon the transport sector. Both the application of a CO2 tax and voluntary agreements, could serve as similar means as that of the EU-ETS. The main problematic associated with the transport sector and environmental regulations arise from the Kyoto Protocol based segregation of countries, potentially being root for distortion of the competitiveness of the transport sector.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
Publication date2010
Number of pages124