IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/69455.html
   My bibliography  Save this paper

A Review Paper on Carbon Trading

Author

Listed:
  • Kohli, Deepti
  • Sinha, Pankaj

Abstract

Carbon dioxide (CO2) emissions in our atmosphere have been increasing steadily due to the burning of fossil fuels such as coal, gas and oil, etc. CO2 being a Greenhouse Gas (GHG) has contributed to global warming resulting in the melting of polar ice caps and glaciers leading to a rise in the sea levels and finally culminating in the submerging of coastal and low-level areas all around the world. Thus, with the intention of controlling global warming and the rising CO2 emissions, the Kyoto Protocol was set up in 2005 to compel the developed countries to lower their greenhouse gas (GHG) emissions thus giving rise to the concept of carbon credits, devised to reduce global carbon emission levels. However, the first phase of the sole international agreement to cut GHG emissions came to an end in 2012. The Kyoto Protocol has not been qualified as an absolute success seeing that it has not produced any demonstrable reduction in emission levels, and global temperatures are still rising at an alarming rate. A miscarriage of the treaty can also be sensed through the demeanor of countries like Canada, which pulled back from the treaty in 2011; Japan and Russia, who would not commit themselves beyond 2012 while the United States remains aloof. This study reviews the climate change regime and explores the concept of carbon credits, how carbon trading is occurring presently and also identifies some key issues concerning the same. The reasons for the unsatisfactory results of the Kyoto Protocol and prospects in mitigating climate change have also been discussed here.

Suggested Citation

  • Kohli, Deepti & Sinha, Pankaj, 2014. "A Review Paper on Carbon Trading," MPRA Paper 69455, University Library of Munich, Germany, revised 30 Jan 2016.
  • Handle: RePEc:pra:mprapa:69455
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/69455/1/MPRA_paper_69455.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Regina Betz & Misato Sato, 2006. "Emissions trading: lessons learnt from the 1st phase of the EU ETS and prospects for the 2nd phase," Climate Policy, Taylor & Francis Journals, vol. 6(4), pages 351-359, July.
    2. Michaelowa, Axel & Jotzo, Frank, 2005. "Transaction costs, institutional rigidities and the size of the clean development mechanism," Energy Policy, Elsevier, vol. 33(4), pages 511-523, March.
    3. Claudia Kettner-Marx & Angela Köppl & Stefan Schleicher, 2012. "Carbon Authority as Price Stabilising Institution in the EU ETS," WIFO Studies, WIFO, number 44536.
    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. Stankeviciute, Loreta & Kitous, Alban & Criqui, Patrick, 2008. "The fundamentals of the future international emissions trading system," Energy Policy, Elsevier, vol. 36(11), pages 4272-4286, November.
    2. Emilie Alberola & Benoît Chèze & Julien Chevallier, 2008. "The EU Emissions Trading Scheme : Disentangling the Effects of Industrial Production and CO2 Emissions on Carbon Prices," EconomiX Working Papers 2008-12, University of Paris Nanterre, EconomiX.
    3. Watts, David & Albornoz, Constanza & Watson, Andrea, 2015. "Clean Development Mechanism (CDM) after the first commitment period: Assessment of the world׳s portfolio and the role of Latin America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1176-1189.
    4. Axel Michaelowa & Katharina Michaelowa, 2011. "Climate business for poverty reduction? The role of the World Bank," The Review of International Organizations, Springer, vol. 6(3), pages 259-286, September.
    5. Eyckmans, Johan & Rousseau, Sandra, 2009. "The European Emissions Trading System in Belgium," Working Papers 2009/26, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    6. Nhan Thanh Nguyen & Minh Ha-Duong & Sandra Greiner & Michael Mehling, 2011. "Implementing the Clean Development Mechanism in Vietnam: potential and limitations," Post-Print halshs-00654294, HAL.
    7. Peiyao Shen & Regina Betz & Andreas Ortmann & Rukai Gong, 2020. "Improving Truthful Reporting of Polluting Firms by Rotating Inspectors: Experimental Evidence from a Bribery Game," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 201-233, July.
    8. Naeem Ashraf & Alireza Ahmadsimab & Jonatan Pinkse, 2017. "From Animosity to Affinity: The Interplay of Competing Logics and Interdependence in Cross-Sector Partnerships," Journal of Management Studies, Wiley Blackwell, vol. 54(6), pages 793-822, September.
    9. Ke, Ming-Tsun & Yeh, Chia-Hung & Su, Cheng-Jie, 2017. "Cloud computing platform for real-time measurement and verification of energy performance," Applied Energy, Elsevier, vol. 188(C), pages 497-507.
    10. Nives Dolšak & Emily Crandall, 2013. "Do we know each other? Bilateral ties and the location of clean development mechanism projects," Climatic Change, Springer, vol. 118(3), pages 521-536, June.
    11. Ye, Xianming & Xia, Xiaohua, 2016. "Optimal metering plan for measurement and verification on a lighting case study," Energy, Elsevier, vol. 95(C), pages 580-592.
    12. Del Río, Pablo, 2007. "Encouraging the implementation of small renewable electricity CDM projects: An economic analysis of different options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1361-1387, September.
    13. Simon Shackley & Michael Thompson, 2012. "Lost in the mix: will the technologies of carbon dioxide capture and storage provide us with a breathing space as we strive to make the transition from fossil fuels to renewables?," Climatic Change, Springer, vol. 110(1), pages 101-121, January.
    14. Leon Vinokur, 2009. "Disposition in the Carbon Market and Institutional Constraints," Working Papers 652, Queen Mary University of London, School of Economics and Finance.
    15. Valentová, Michaela & Horák, Martin & Dvořáček, Lukáš, 2020. "Why transaction costs do not decrease over time? A case study of energy efficiency programmes in Czechia," Energy Policy, Elsevier, vol. 147(C).
    16. repec:zbw:hohpro:354 is not listed on IDEAS
    17. Valentová, Michaela & Lízal, Lubomír & Knápek, Jaroslav, 2018. "Designing energy efficiency subsidy programmes: The factors of transaction costs," Energy Policy, Elsevier, vol. 120(C), pages 382-391.
    18. Halkos, George, 2014. "The Economics of Climate Change Policy: Critical review and future policy directions," MPRA Paper 56841, University Library of Munich, Germany.
    19. Anger, Niels & Böhringer, Christoph & Moslener, Ulf, 2007. "Macroeconomic Impacts of the Clean Development Mechanism: The Role of Investment Barriers and Regulations," ZEW Discussion Papers 07-026, ZEW - Leibniz Centre for European Economic Research.
    20. Hultman, Nathan E. & Pulver, Simone & Guimarães, Leticia & Deshmukh, Ranjit & Kane, Jennifer, 2012. "Carbon market risks and rewards: Firm perceptions of CDM investment decisions in Brazil and India," Energy Policy, Elsevier, vol. 40(C), pages 90-102.
    21. Berrittella Maria & Cimino Filippo Alessandro, 2017. "An Assessment of Carousel Value-Added Tax Fraud in The European Carbon Market," Review of Law & Economics, De Gruyter, vol. 13(2), pages 1-19, July.

    More about this item

    Keywords

    carbon credits; carbon trading; clean development mechanism; emissions reduction; greenhouse gases; joint implementation; Kyoto Protocol;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pra:mprapa:69455. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.