Carbon Markets, Institutions, Policies, and Research

72 Pages Posted: 20 Apr 2016

See all articles by Donald F. Larson

Donald F. Larson

Institute for the Theory and Practice of International Relations

Philippe Ambrosi

World Bank

Ariel Dinar

World Bank - Agriculture and Rural Development Department

Shaikh Mahfuzur Rahman

World Bank

Rebecca Entler

Pennsylvania State University

Date Written: October 1, 2008

Abstract

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.

Keywords: Carbon Policy and Trading, Energy and Environment, Environment and Energy Efficiency, Climate Change, Transport and Environment

Suggested Citation

Larson, Donald F. and Ambrosi, Philippe and Dinar, Ariel and Rahman, Shaikh Mahfuzur Mahfuzur and Entler, Rebecca, Carbon Markets, Institutions, Policies, and Research (October 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1293174

Donald F. Larson (Contact Author)

Institute for the Theory and Practice of International Relations ( email )

P.O. Box 8795
Williamsburg, VA 23185
United States

HOME PAGE: http://https://sites.google.com/site/decrgdonaldflarson/

Philippe Ambrosi

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Ariel Dinar

World Bank - Agriculture and Rural Development Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-473-0434 (Phone)

Shaikh Mahfuzur Mahfuzur Rahman

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Rebecca Entler

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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