Carbon Markets, Institutions, Policies, and Research

Ambrosi, Philippe; Larson, Donald F.; Dinar, Ariel; Rahman, Shaikh Mahfuzur; Entler, Rebecca

Carbon Markets, Institutions, Policies, and Research

Autores

Ambrosi, Philippe

Larson, Donald F.

Dinar, Ariel

Rahman, Shaikh Mahfuzur

Entler, Rebecca

Editor

World Bank, Washington, DC

Descripción

The scale of investment needed to slow greenhouse gas emissions is larger than governments can manage through transfers. Therefore, climate change policies rely heavily on markets and private capital. This is especially true in the case of the Kyoto Protocol with its provisions for trade and investment in joint projects. This paper describes institutions and policies important for new carbon markets and explains their origins. Research efforts that explore conceptual aspects of current policy are surveyed along with empirical studies that make predictions about how carbon markets will work and perform. The authors summarize early investment and price outcomes from newly formed markets and point out areas where markets have preformed as predicted and areas where markets remain incomplete. Overall the scale of carbon-market investment planned exceeds earlier expectations, but the geographic dispersion of investment is uneven and important opportunities for abatement remain untapped in some sectors, indicating a need for additional research on how investment markets work. How best to promote the development and deployment of new technologies is another promising area for study identified in the paper.

Palabras clave

ABATEMENT COSTS, ADAPTATION FUND, ADVERSE EFFECTS, AFFORESTATION, AGGREGATE SUPPLY, AIR POLLUTION, ALTERNATIVE APPROACH, ANCILLARY BENEFITS, ANTHROPOGENIC GREENHOUSE GASES, ANTHROPOGENIC INTERFERENCE, ATMOSPHERE, ATMOSPHERIC CARBON, ATMOSPHERIC CARBON CONCENTRATIONS, ATMOSPHERIC CARBON DIOXIDE, ATMOSPHERIC CONCENTRATION, BIOLOGICAL DIVERSITY, CARBON, CARBON ACCUMULATION, CARBON DIOXIDE, CARBON EMISSION, CARBON EMISSIONS, CARBON EQUIVALENTS, CARBON FINANCING, CARBON INTENSITY, CARBON LEAKAGE, CARBON MARKET, CARBON MARKETS, CARBON OFFSET, CARBON PRICES, CARBON PROJECTS, CARBON SEQUESTRATION, CARBON STOCKS, CARBON TAX, CARBON TAXES, CARBON TECHNOLOGIES, CARBON TRADING, CARBON UNITS, CEMENT INDUSTRY, CERTIFIED EMISSIONS, CERTIFIED EMISSIONS REDUCTIONS, CERTIFIED PROJECT ACTIVITY, CERTIFIED REDUCTIONS, CLEAN AIR, CLEAN COAL, CLEAN DEVELOPMENT, CLEAN DEVELOPMENT MECHANISM, CLEAN DEVELOPMENT MECHANISMS, CLEAN ENERGY, CLEAN ENERGY TECHNOLOGIES, CLEAN TECHNOLOGY, CLEAN TECHNOLOGY FUND, CLIMATE, CLIMATE CHANGE, CLIMATE CHANGE CONVENTION, CLIMATE CHANGE LITERATURE, CLIMATE CHANGE POLICIES, CLIMATE CHANGE POLICY, CLIMATE CHANGE TREATY, CLIMATE MODELS, CLIMATE POLICY, CLIMATE SYSTEM, CO2, CO2 EMISSIONS, COAL, CONFERENCE OF THE PARTIES, CONSUMPTION OF FOSSIL, CONVENTION ON BIOLOGICAL DIVERSITY, COSTS OF COMPLIANCE, DEFORESTATION, DESERTIFICATION, DOMESTIC EMISSIONS, EARTH SUMMIT, ECOSYSTEMS, EFFICIENT LIGHTING, ELECTRICITY, ELECTRICITY SECTOR, EMISSION, EMISSION ABATEMENT, EMISSION CEILINGS, EMISSION CONTROLS, EMISSION GOALS, EMISSION LEVELS, EMISSION LIMITATION, EMISSION LIMITS, EMISSION PERMITS, EMISSION REDUCTION, EMISSION REDUCTION GOALS, EMISSION REDUCTION UNITS, EMISSION TARGETS, EMISSION TRADING, ENERGY EFFICIENCY, ENERGY SYSTEMS, ENVIRONMENTAL BENEFITS, FORESTRY, FORESTS, FOSSIL FUEL, FOSSIL FUELS, FRAMEWORK CONVENTION ON CLIMATE CHANGE, GAS PHASE, GASES, GASOLINE, GDP, GLOBAL EMISSIONS, GLOBAL ENVIRONMENT, GLOBAL ENVIRONMENT FACILITY, GLOBAL WARMING, GREENHOUSE, GREENHOUSE EFFECT, GREENHOUSE GAS, GREENHOUSE GAS EMISSION, GREENHOUSE GAS EMISSION REDUCTIONS, GREENHOUSE GAS EMISSIONS, GREENHOUSE GAS MITIGATION, GREENHOUSE GAS SINKS, GREENHOUSE GASES, GROUND BIOMASS, HOT AIR, HYDROFLUOROCARBONS, HYPOTHETICAL BASELINE, INCOME, INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE, IPCC, IRREVERSIBLE INVESTMENTS, KYOTO PROTOCOL, LAND USE, LEVEL OF EMISSIONS, MARGINAL ABATEMENT, MARGINAL ABATEMENT COST, METHANE, MORAL HAZARD, NATURAL RESOURCES, NEGOTIATIONS, NET EMISSIONS, NITROUS OXIDE, OCEANS, OIL, ORGANIC CARBON, OZONE, OZONE LAYER, PERFLUOROCARBONS, POLICY DECISIONS, POLLUTANTS, POLLUTION PROBLEMS, PROGRAMS, REFORESTATION, REGIONAL ELECTRICITY, REGIONAL ELECTRICITY MARKET, RENEWABLE ENERGY, RENEWABLE ENERGY TECHNOLOGIES, RESTRICTIONS, RISING SEA LEVELS, SEA LEVELS, SHADOW PRICE, SOIL, SOLAR POWER, SULFUR, SULFUR DIOXIDE, SULFUR DIOXIDE PERMIT, SULPHUR, SUSTAINABLE DEVELOPMENT, TRADABLE CARBON, TRADABLE PERMIT, TRADABLE PERMIT SYSTEM, TRADABLE PERMITS, TRANSACTION COSTS, VOLUNTARY EMISSION, WATER VAPOR, WELFARE LOSS, WELFARE LOSSES, WIND, WIND POWER, WMO, WORLD METEOROLOGICAL ORGANIZATION