Carbon markets 15 years after Kyoto: Lessons learned, new challenges

By Richard G. Newell, William A. Pizer, Daniel Raimi. 2013

219 citations recorded by the source corpus.

Carbon markets are substantial and they are expanding. There are many lessons from market experiences over the past eight years: there should be 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 market architecture features separate emissions trading systems serving distinct jurisdictions and a variety of other types of policies exist alongside the carbon markets.This situation is in sharp contrast to the top-down, 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. Stakeholders and policymakers must confront how to measure the comparability of efforts among markets as well as relative to a variety of other policy approaches. International negotiators must in turn work out a global agreement that can accommodate and support increasingly bottom-up approaches to carbon markets and climate change mitigation.

Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/89448ee410d81dd2b8725cc9d1b5c5414c1fa75a

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. R. Cong
2. Jennifer Alix-García
3. Alex Y. Lo
4. Hendrik Wolff
5. Zhongxiang Zhang

In Environmental Engineering

1. R. Cong
2. Jennifer Alix-García
3. Hendrik Wolff

In Renewable Energy, Sustainability and the Environment

1. R. Cong
2. Jennifer Alix-García
3. Alex Y. Lo
4. Hendrik Wolff

Citations in the corpus

• Payment for Ecosystem Services from Forests (2014, methodology): “The main purchaser of CER has been the EU Emissions Trading System, which uses these CER as part of the approved offsets for member states (Newell et al. 2013).”
• Emission trading and carbon market performance in Shenzhen, China (2017, background): “There has been a well-established knowledge base about the implementation of ETSs in developed economies [41-43].”