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How Carbon Credits are Certified Could Change the Market Structure

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Abstract

While there is much discussion about the need for viable carbon credit markets with well-defined credible certification, there is also a need to consider the impacts of the costs of certification on the structure of those markets. This policy brief provides background to the consideration of how certification costs might influence the industrial structure of the certification industry and how firms compete with each other.

Suggested Citation

  • John M. Crespi & Stéphan Marette, 2022. "How Carbon Credits are Certified Could Change the Market Structure," Center for Agricultural and Rural Development (CARD) Publications 22-pb37, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:22-pb37
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    1. Tina L. Saitone & Richard J. Sexton, 2010. "Product Differentiation and Quality in Food Markets: Industrial Organization Implications," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 341-368, October.
    2. Crespi, John M. & Marette, Stephan, 2003. "Some Economic Implications Of Public Labeling," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-12, November.
    3. Oranuch Wongpiyabovorn & Alejandro Plastina & John M. Crespi, 2021. "US Agriculture as a Carbon Sink: From International Agreements to Farm Incentives," Center for Agricultural and Rural Development (CARD) Publications 21-wp627, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    5. John M. Crespi & St)phan Marette, 2001. "How Should Food Safety Certification be Financed?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 852-861.
    6. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
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    1. Oranuch Wongpiyabovorn & Alejandro Plastina & John M. Crespi, 2023. "Challenges to voluntary Ag carbon markets," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1154-1167, June.

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