IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v25y2023i5d10.1007_s10668-022-02205-w.html
   My bibliography  Save this article

Strategic drivers for sustainable implementation of carbon trading in India

Author

Listed:
  • Shashank Bansal

    (Indian Institute of Technology (ISM) Dhanbad)

  • Mohul Mukhopadhyay

    (Indian Institute of Technology (ISM) Dhanbad)

  • Shipra Maurya

    (Indian Institute of Technology (ISM) Dhanbad)

Abstract

India is a major contributor to the global warming of the world, but there persists a prevalent lack of understanding of carbon trading (carbon credit derivative) as a commodity tradable on the stock exchange. The study brings into light the predominant drivers that can lead to the sustainable enhancement of efficacy and efficiency of carbon credit trading in India. The key drivers responsible for the sustainable implementation of the carbon credit derivative trading in India are identified and critically examined. The Analytic Hierarchy Process and Best–Worst Method have been used to rank the factors and sub-factors based on the priority (or weights) provided by the industry experts. The results indicate that the risk factors in the carbon credit derivative market are extremely crucial for enhancing sustainable trading of carbon credit derivatives closely followed by the reward and opportunity factors. The study is the first study which analyses the factors that can lead to the sustainable implementation of carbon credit trading in India. The study also contributes to the organizational strategy that carbon securitization would contribute significantly towards their financial as well as ecological sustainability.

Suggested Citation

  • Shashank Bansal & Mohul Mukhopadhyay & Shipra Maurya, 2023. "Strategic drivers for sustainable implementation of carbon trading in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4411-4435, May.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:5:d:10.1007_s10668-022-02205-w
    DOI: 10.1007/s10668-022-02205-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-022-02205-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-022-02205-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yang, Xinyu & Jiang, Ping & Pan, Yao, 2020. "Does China's carbon emission trading policy have an employment double dividend and a Porter effect?," Energy Policy, Elsevier, vol. 142(C).
    2. Michael A. Goldstein & Edith S. Hotchkiss & David J. Pedersen, 2019. "Secondary Market Liquidity and Primary Market Pricing of Corporate Bonds," JRFM, MDPI, vol. 12(2), pages 1-17, May.
    3. Ippolito, Richard A, 1992. "Consumer Reaction to Measures of Poor Quality: Evidence from the Mutual Fund Industry," Journal of Law and Economics, University of Chicago Press, vol. 35(1), pages 45-70, April.
    4. Kim, Jeayoon & Park, Kwangwoo, 2018. "Effect of the Clean Development Mechanism on the deployment of renewable energy: Less developed vs. well-developed financial markets," Energy Economics, Elsevier, vol. 75(C), pages 1-13.
    5. Zhang, Yue-Jun & Liang, Ting & Jin, Yan-Lin & Shen, Bo, 2020. "The impact of carbon trading on economic output and carbon emissions reduction in China’s industrial sectors," Applied Energy, Elsevier, vol. 260(C).
    6. Robert N. Stavins, 2008. "Addressing climate change with a comprehensive US cap-and-trade system," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(2), pages 298-321, Summer.
    7. Dimitris Psychoyios & George Skiadopoulos, 2006. "Volatility options: Hedging effectiveness, pricing, and model error," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 26(1), pages 1-31, January.
    8. Perdan, Slobodan & Azapagic, Adisa, 2011. "Carbon trading: Current schemes and future developments," Energy Policy, Elsevier, vol. 39(10), pages 6040-6054, October.
    9. Martin Whittaker, 2000. "Global Climate Change: Uncovering Hidden Investment Risk and Opportunity*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 25(4), pages 619-628, October.
    10. Jafar Rezaei, 2020. "A Concentration Ratio for Nonlinear Best Worst Method," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 891-907, May.
    11. Rezaei, Jafar, 2016. "Best-worst multi-criteria decision-making method: Some properties and a linear model," Omega, Elsevier, vol. 64(C), pages 126-130.
    12. P. Barnwal & G. N. Tiwari, 2008. "Life cycle energy metrics and CO 2 credit analysis of a hybrid photovoltaic/thermal greenhouse dryer," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 3(3), pages 203-220, July.
    13. Rezaei, Jafar, 2015. "Best-worst multi-criteria decision-making method," Omega, Elsevier, vol. 53(C), pages 49-57.
    14. Yuanqiao Chen & Zhisong Chen & Jianhui Peng, 2021. "How does emission right-based lending contribute to sustainable production and green financing? A modelling study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13945-13972, September.
    15. Merrick, John J., 1988. "Hedging with Mispriced Futures," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 23(4), pages 451-464, December.
    16. Xiangsheng Dou, 2015. "The essence, feature and role of low carbon economy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(1), pages 123-136, February.
    17. K. Rezaei-Moghaddam & E. Karami, 2008. "A multiple criteria evaluation of sustainable agricultural development models using AHP," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 10(4), pages 407-426, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vieira, Fabiana C. & Ferreira, Fernando A.F. & Govindan, Kannan & Ferreira, Neuza C.M.Q.F. & Banaitis, Audrius, 2022. "Measuring urban digitalization using cognitive mapping and the best worst method (BWM)," Technology in Society, Elsevier, vol. 71(C).
    2. Wu, Qun & Liu, Xinwang & Zhou, Ligang & Qin, Jindong & Rezaei, Jafar, 2024. "An analytical framework for the best–worst method," Omega, Elsevier, vol. 123(C).
    3. Murad, C.A. & Bellinello, M.M. & Silva, A.J. & Netto, A. Caminada & de Souza, G.F.M. & Nabeta, S.I., 2022. "A novel methodology employed for ranking and consolidating performance indicators in holding companies with multiple power plants based on multi-criteria decision-making method," Operations Research Perspectives, Elsevier, vol. 9(C).
    4. Kheybari, Siamak & Javdanmehr, Mahsa & Rezaie, Fariba Mahdi & Rezaei, Jafar, 2021. "Corn cultivation location selection for bioethanol production: An application of BWM and extended PROMETHEE II," Energy, Elsevier, vol. 228(C).
    5. Siamak Kheybari & Mohammad Reza Mehrpour & Paul Bauer & Alessio Ishizaka, 2024. "How Can Risk-Averse and Risk-Taking Approaches be Considered in a Group Multi-Criteria Decision-Making Problem?," Group Decision and Negotiation, Springer, vol. 33(4), pages 883-909, August.
    6. Li, Qinglin & Rezaei, Jafar & Tavasszy, Lori & Wiegmans, Bart & Guo, Jingwei & Tang, Yinying & Peng, Qiyuan, 2020. "Customers’ preferences for freight service attributes of China Railway Express," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 225-236.
    7. Sisto, Roberta & Fernández-Portillo, Luis A. & Yazdani, Morteza & Estepa-Mohedano, Lorenzo & Torkayesh, Ali Ebadi, 2022. "Strategic planning of rural areas: Integrating participatory backcasting and multiple criteria decision analysis tools," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    8. James J. H. Liou & Perry C. Y. Liu & Huai-Wei Lo, 2020. "A Failure Mode Assessment Model Based on Neutrosophic Logic for Switched-Mode Power Supply Risk Analysis," Mathematics, MDPI, vol. 8(12), pages 1-19, December.
    9. Junnan Wu & Xin Liu & Dianqi Pan & Yichen Zhang & Jiquan Zhang & Kai Ke, 2023. "Research on Safety Evaluation of Municipal Sewage Treatment Plant Based on Improved Best-Worst Method and Fuzzy Comprehensive Method," Sustainability, MDPI, vol. 15(11), pages 1-15, May.
    10. Liang, Fuqi & Brunelli, Matteo & Rezaei, Jafar, 2020. "Consistency issues in the best worst method: Measurements and thresholds," Omega, Elsevier, vol. 96(C).
    11. Pushparenu Bhattacharjee & Syed Abou Iltaf Hussain & V. Dey & U. K. Mandal, 2023. "Failure mode and effects analysis for submersible pump component using proportionate risk assessment model: a case study in the power plant of Agartala," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(5), pages 1778-1798, October.
    12. Salimi, Negin & Rezaei, Jafar, 2018. "Evaluating firms’ R&D performance using best worst method," Evaluation and Program Planning, Elsevier, vol. 66(C), pages 147-155.
    13. Yuanxin Liu & FengYun Li & Yi Wang & Xinhua Yu & Jiahai Yuan & Yuwei Wang, 2018. "Assessing the Environmental Impact Caused by Power Grid Projects in High Altitude Areas Based on BWM and Vague Sets Techniques," Sustainability, MDPI, vol. 10(6), pages 1-20, May.
    14. Ravindra Singh Saluja & Varinder Singh, 2023. "Attribute-based characterization, coding, and selection of joining processes using a novel MADM approach," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 616-655, June.
    15. Ghadimi, Pezhman & Donnelly, Oisin & Sar, Kubra & Wang, Chao & Azadnia, Amir Hossein, 2022. "The successful implementation of industry 4.0 in manufacturing: An analysis and prioritization of risks in Irish industry," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    16. Liu, Xiao & Li, Ming-Yang, 2024. "Sustainable service product design method: Focus on customer demands and triple bottom line," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    17. Junli Zhang & Guoteng Wang & Zheng Xu & Zheren Zhang, 2022. "A Comprehensive Evaluation Method and Strengthening Measures for AC/DC Hybrid Power Grids," Energies, MDPI, vol. 15(12), pages 1-20, June.
    18. Hamzeh Soltanali & Mehdi Khojastehpour & Siamak Kheybari, 2023. "Evaluating the critical success factors for maintenance management in agro-industries using multi-criteria decision-making techniques," Operations Management Research, Springer, vol. 16(2), pages 949-968, June.
    19. Yossi Hadad & Baruch Keren & Dima Alberg, 2023. "An Expert System for Ranking and Matching Electric Vehicles to Customer Specifications and Requirements," Energies, MDPI, vol. 16(11), pages 1-18, May.
    20. Corrente, Salvatore & Greco, Salvatore & Rezaei, Jafar, 2024. "Better decisions with less cognitive load: The Parsimonious BWM," Omega, Elsevier, vol. 126(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:25:y:2023:i:5:d:10.1007_s10668-022-02205-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.