Carbon Markets: Past, Present, and Future

44 Pages Posted: 11 Nov 2012 Last revised: 24 May 2014

See all articles by Richard G. Newell

Richard G. Newell

Duke University - Nicholas School of Environment; National Bureau of Economic Research (NBER); Resources for the Future

William A. Pizer

Duke University

Daniel Raimi

Duke University

Multiple version iconThere are 4 versions of this paper

Date Written: November 2012

Abstract

Carbon markets are substantial and they are expanding. There are many lessons from experiences over the past eight years: fewer free allowances, better management of market-sensitive information, and a recognition that trading systems require adjustments that have consequences for market participants and market confidence. Moreover, the emerging international architecture features separate emissions trading systems serving distinct jurisdictions. These programs are complemented by a variety of other types of policies alongside the carbon markets. This sits in sharp contrast to the integrated global trading architecture envisioned 15 years ago by the designers of the Kyoto Protocol and raises a suite of new questions. In this new architecture, jurisdictions with emissions trading have to decide how, whether, and when to link with one another, and policymakers overseeing carbon markets must confront how to measure the comparability of efforts among markets and relative to a variety of other policy approaches.

Suggested Citation

Newell, Richard G. and Pizer, William A. and Raimi, Daniel, Carbon Markets: Past, Present, and Future (November 2012). NBER Working Paper No. w18504. Available at SSRN: https://ssrn.com/abstract=2173617

Richard G. Newell (Contact Author)

Duke University - Nicholas School of Environment ( email )

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National Bureau of Economic Research (NBER) ( email )

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Resources for the Future ( email )

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William A. Pizer

Duke University ( email )

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Daniel Raimi

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

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