The carbon market challenge : preventing abuse through effective governance / Regina Betz [and six others].

Format:

Book

Author/Creator:

Betz, Regina Annette, author.

Series:

Cambridge elements. Elements in earth system governance, 2631-7818.

Cambridge elements. Elements in earth system governance, 2631-7818

Language:

English

Subjects (All):

Carbon offsetting.

Emissions trading.

Physical Description:

1 online resource (90 pages) : digital, PDF file(s).

Edition:

1st ed.

Place of Publication:

Cambridge : Cambridge University Press, 2022.

Summary:

Carbon markets - both emission trading systems and baseline and credit systems - are an increasingly common policy instrument being introduced to address climate change mitigation. However, their design is crucial to ensure that they deliver cost-effective emission reductions while maintaining environmental integrity. This Element puts together a comprehensive, principle-based overview of the risks and abuses to environmental integrity and cost effectiveness that have emerged for carbon markets at all jurisdictional levels around the world, provides concrete examples, and offers effective policy and governance solutions to overcome such risks. This title is also available as Open Access on Cambridge Core.

Contents:

Cover

Title page

Copyright page

The Carbon Market Challenge: Preventing Abuse Through Effective Governance

Contents

1 An Introduction to Carbon Markets

1.1 Relevance of Carbon Markets

1.2 Carbon Markets Around the World

1.3 Carbon Markets as Polycentric Governance Arrangements

2 Toward a Principle„-Based„ Assessment of Regulatory Frameworks for Carbon Markets

2.1 Legal Principles for Carbon Markets

2.1.1 Principles of Public Law

2.1.2 Principles of Private Law

2.1.3 Principles of Environmental Law

2.1.4 Principles of Financial Market Regulation

2.2 Environmental and Economic Principles for Carbon Markets

2.2.1 Environmental Integrity

2.2.2 Economic Efficiency

2.2.3 Market Stability

2.2.4 Equity and Fairness

3 Baseline„-and„-Credit„ Systems

3.1 Characteristics of Baseline-and-Credit Systems and Possibilities for Abuse

3.2 Risks Related to Baseline Setting

3.2.1 Examples

3.2.2 Prevention, Detection, and Enforcement

3.3 Risks Related to Additionality Determination

3.3.1 Examples

3.3.2 Prevention, Detection, and Enforcement

4 Cap„-and„-Trade„ Systems

4.1 Risks Related to Cap Stringency

4.1.1 Impact on Economic Efficiency and Environmental Integrity

4.1.2 Examples

4.1.3 Prevention, Detection, and Enforcement

4.2 Risk of Overshooting the Cap

4.2.1 Impact on Efficiency and Environmental Integrity

4.2.2 Examples

4.2.3 Prevention, Detection, and Enforcement

4.3 Risk of Creating Perverse Incentives

4.3.1 Impact on Efficiency and Environmental Integrity

4.3.2 Examples

Lobbying Effort and Rent Seeking in the EU ETS

Lobbying for Windfall Profits

Perverse Incentives and Distortions due to Allocation Rules

Compensation for Increased Electricity Costs

Perverse Incentive Related to Noncompliance.

4.3.3 Prevention, Detection, and Enforcement

5 Cross„-Cutting„ Risks

5.1 Monitoring, Reporting, and Verification Risks

5.1.1 Impact on Efficiency and Environmental Integrity

5.1.2 Examples

5.1.3 Prevention, Detection, and Enforcement

5.2 Risk of Double Counting

5.2.1 Examples

5.2.2 Prevention, Detection, and Enforcement

5.3 Risk of Market Manipulation

5.3.1 Initial Allocation of Allowances

5.3.2 Examples

5.3.3 Impact on Efficiency and Environmental Integrity

5.3.4 Prevention, Detection, and Enforcement

5.4 Risk of Fraud

5.4.1 Value-Added Tax (VAT) Fraud

5.4.2 Money Laundering

5.4.3 Tax Evasion

5.4.4 Allowance Theft

5.4.5 Selling Fake Credits or Allowances

5.4.6 Impact on Efficiency and Environmental Integrity

5.4.7 Prevention, Detection, and Enforcement

5.5 Risk of Corruption

5.5.1 Examples of Corruption

5.5.2 Prevention, Detection, and Enforcement

6 Toward Effective Market Oversight

6.1 Lessons Learned from Existing Markets for Improving Governance Arrangements for Carbon Markets

6.2 Challenges for International Carbon Markets under the Paris Agreement

6.3 Open Research Questions: How to Make Carbon Markets Consistent with a Net-Zero World

6.4 Concluding Remarks

References

Acknowledgement.

Notes:

Title from publisher's bibliographic system (viewed on 12 Sep 2022).

ISBN:

9781009216463

1009216465

9781009216494

100921649X

9781009216500

1009216503

OCLC:

1492950950

Access Restriction:

Open Access. Unrestricted online access