Climate change and carbon markets: a panoramic history
AbstractInternational carbon markets have grown quickly in recent years, but have also experienced serious problems and faced harsh criticism. This paper looks at the history of climate science, at how the economics of emissions trading developed, and at the formation of international institutions to address climate change. From this historical perspective it appears that climate change was a problem in need of a solution, and that emissions trading was a solution in search of bigger and bigger problems to solve. The political pressure to reach an international climate agreement was building rapidly in the 1990s, and the resulting marriage of climate change and carbon markets occurred before the quality of the match could be adequately assessed. Many of the problems with international carbon markets can, at a fundamental level, be traced to this imperfect match. This panoramic historical perspective draws attention to the fact that climate change is a very different kind of pollution problem than emissions trading was originally designed to remedy. This helps shed light on recent experiences, and on how international carbon markets must change to provide the benefits they promise.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Grantham Research Institute on Climate Change and the Environment in its series Grantham Research Institute on Climate Change and the Environment Working Papers with number 52.
Date of creation: Jul 2011
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- De Perthuis, Christian & Convery, Frank J. & Ellerman, Denny, 2010. "Pricing carbon : the European Union Emissions Trading Scheme," Economics Papers from University Paris Dauphine 123456789/10174, Paris Dauphine University.
- Weitzman, Martin L, 1974.
"Prices vs. Quantities,"
Review of Economic Studies,
Wiley Blackwell, vol. 41(4), pages 477-91, October.
- Nordhaus, William D, 1977.
"Economic Growth and Climate: The Carbon Dioxide Problem,"
American Economic Review,
American Economic Association, vol. 67(1), pages 341-46, February.
- William D. Nordhaus, 1976. "Economic Growth and Climate: The Carbon Dioxide Problem," Cowles Foundation Discussion Papers 435, Cowles Foundation for Research in Economics, Yale University.
- Ellerman,A. Denny & Convery,Frank J. & de Perthuis,Christian With contributions by-Name:Alberola,Emilie With contributions by-Name:Buchner,Barbara K. With contributions by-Name:Delbosc,Anaïs, 2010. "Pricing Carbon," Cambridge Books, Cambridge University Press, number 9780521196475, December.
- Mitchell Polinsky, A. & Shavell, Steven, 1982.
"Pigouvian taxation with administrative costs,"
Journal of Public Economics,
Elsevier, vol. 19(3), pages 385-394, December.
- Roger Fouquet & Peter J. G. Pearson, 1998. "A Thousand Years of Energy Use in the United Kingdom," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-41.
- Yohe, Gary Wynn, 1977. "Comparisons of price and quantity controls: A survey," Journal of Comparative Economics, Elsevier, vol. 1(3), pages 213-233, September.
- Downing, Paul B. & White, Lawrence J., 1986. "Innovation in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 13(1), pages 18-29, March.
- Adar, Zvi & Griffin, James M., 1976. "Uncertainty and the choice of pollution control instruments," Journal of Environmental Economics and Management, Elsevier, vol. 3(3), pages 178-188, October.
- Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (The GRI Administration).
If references are entirely missing, you can add them using this form.