Carbon Markets: Past, Present, and Future

Posted: 8 Oct 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 2014

Abstract

Carbon markets are substantial and expanding. There are many lessons from experience over the past 9 years: fewer free allowances, careful moderation of low and high prices, 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 architecture 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 policy makers must confront how to measure both the comparability of efforts among markets and the comparability between markets and 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 2014). Annual Review of Resource Economics, Vol. 6, Issue 1, pp. 191-215, 2014. Available at SSRN: https://ssrn.com/abstract=2507240 or http://dx.doi.org/10.1146/annurev-resource-100913-012655

Richard G. Newell (Contact Author)

Duke University - Nicholas School of Environment ( email )

Box 90228
Durham, NC 27708-0328
United States
919-681-8865 (Phone)

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 )

100 Fuqua Drive
Durham, NC 27708-0204
United States

Daniel Raimi

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

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