Four problems with global carbon markets: a critical review

Sovacool, Benjamin K (2011) Four problems with global carbon markets: a critical review. Energy and Environment, 22 (6). pp. 681-694. ISSN 0958-305X

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Abstract

This article offers a critique of global carbon markets and trading, with a special focus on the Clean Development Mechanism of the Kyoto Protocol. It explores
problems with the use of tradable permits to address climate change revolving around four areas: homogeneity, justice, gaming, and information. Homogeneity problems arise from the non-linear nature of climate change and sensitivity of emissions, which complicate attempts to calculate carbon offsets. Justice problems involve issues of dependency and the concentration of wealth among the rich, meaning carbon trading often counteracts attempts to reduce poverty. Gaming problems include pressures to promote high-volume, least-cost projects and the
consequences of emissions leakage. Information problems encompass transaction costs related to carbon trading and market participation and the comparatively weak institutional capacity of project evaluators.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Depositing User: Benjamin Sovacool
Date Deposited: 14 Dec 2015 14:20
Last Modified: 14 Mar 2017 01:56
URI: http://sro.sussex.ac.uk/id/eprint/58268

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