Temporary sequestration credits : an instrument for carbon bears / Kenneth M. Chomitz, Franck Lecocq.

Format:

Book

Author/Creator:

Chomitz, Kenneth M., author.

Lecocq, Franck, author.

Series:

Policy research working papers ; 3181.

Policy research working paper ; 3181

Language:

English

Subjects (All):

Carbon sequestration.

Physical Description:

1 online resource (13 pages).

Other Title:

Temporary Sequestration Credits

Place of Publication:

Washington, DC : World Bank, Washington, DC, [2003]

Summary:

Temporary crediting of carbon storage is a proposed instrument that allows entities with emissions reductions obligations to defer some obligations for a fixed period of time. This instrument provides a means of guaranteeing the environmental integrity of a carbon sequestration project. But because the user of the temporary credit takes on the liability of renewing it, or replacing it with a permanent credit, the temporary credit must sell at a discount compared with a permanent credit. The authors show that this discount depends on the expected change in price of a permanent credit. Temporary credits have value only if restrictions on carbon emissions are not expected to tighten substantially. The intuition is illustrated by assessing the value of a hypothetical temporary sulfur dioxide sequestration credit using historical data on actual sulfur dioxide allowance prices.

Notes:

Description based on print version record.

Publisher Number:

10.1596/1813-9450-3181