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The present study has the following research objectives: i) to identify the concepts of environmental economics behind the carbon market and explain this option as a possible strategy of environmental control; ii) to Understand how the carbon market is being established and regulated within the European Union, particularly in Portugal; and iii) to identify the carbon market perceptions of a major Portuguese operator, “EDP”. The methodologies used to achieve these objectives are: literature review on environmental markets and the carbon market, case study with exploratory interviews, combined with a SWOT analysis of EDP. Results show the carbon market as a cost effective option, complementary of other strategies, with considerable advantages over the introduction of taxes. Despite the efforts and the complex regulations of the European ...
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