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The Economics of Carbon Offsets

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  • James B. Bushnell

Abstract

Although international programs for carbon offsets play an important role in current and prospective climate-change policy, they continue to be very controversial. Asymmetric information creates several incentive problems, include adverse selection and moral hazard, in offset markets. The current regulatory focus on additionality tends to paint all these problems with a broad brush without proper consideration of the context or their implications.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16305.

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Date of creation: Aug 2010
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Publication status: published as The Economics of Carbon Offsets , James B. Bushnell. in The Design and Implementation of U.S. Climate Policy , Fullerton and Wolfram. 2012
Handle: RePEc:nbr:nberwo:16305

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Cited by:
  1. Jimena González-Ramírez & Catherine L. Kling & Adriana Valcu, 2012. "An Overview of Carbon Offsets from Agriculture," Annual Review of Resource Economics, Annual Reviews, Annual Reviews, vol. 4(1), pages 145-160, 08.
  2. Hilary Sigman, 2010. "Monitoring and Enforcement of Climate Policy," Departmental Working Papers, Rutgers University, Department of Economics 201006, Rutgers University, Department of Economics.
  3. Hilary Sigman & Howard F. Chang, 2011. "The Effect of Allowing Pollution Offsets With Imperfect Enforcement," NBER Working Papers 16860, National Bureau of Economic Research, Inc.
  4. Yallwe, Hagos Alem & Buscemi, Antonino, 2011. "It is time to re-think on environment, energy and economics (E3)," MPRA Paper 32216, University Library of Munich, Germany.
  5. He, Gang & Morse, Richard, 2013. "Addressing carbon Offsetters’ Paradox: Lessons from Chinese wind CDM," Energy Policy, Elsevier, Elsevier, vol. 63(C), pages 1051-1055.
  6. van Benthem, Arthur & Kerr, Suzi, 2013. "Scale and transfers in international emissions offset programs," Journal of Public Economics, Elsevier, Elsevier, vol. 107(C), pages 31-46.
  7. Heather Klemick, 2012. "What is the Optimal Offsets Discount under a Second-Best Cap & Trade Policy?," NCEE Working Paper Series, National Center for Environmental Economics, U.S. Environmental Protection Agency 201204, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jul 2012.

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