IDEAS home Printed from https://ideas.repec.org/p/sol/wpaper/2013-115381.html
   My bibliography  Save this paper

Regulated (CDM) and voluntary carbon offset schemes as carbon offset markets: competition or complementarity?

Author

Listed:
  • Simon Bisore
  • Walter Hecq

Abstract

As one of the offsetting instruments, the Clean Development Mechanism (CDM) allows industrialized countries to meet their compliance objectives by undertaking and financing project activities in developing countries with certified emissions reductions (CERs) in return. Next to Kyoto mechanisms, voluntary offset markets for GHG emissions reductions that are not compliant with the Kyoto Protocol are developing quickly. Emissions offsets in this latter category are verified by official or independent agents but are not certified by regulatory authorities for use as a compliance instrument, and are commonly referred to as verified emissions reductions (VERs) which are not a standardized commodity. This paper compares the two types of projects-based carbon offset markets and analyses the question of complementarity or competition between them in their contribution to the mitigation of global warming as well as to sustainable development in the host countries.

Suggested Citation

  • Simon Bisore & Walter Hecq, 2012. "Regulated (CDM) and voluntary carbon offset schemes as carbon offset markets: competition or complementarity?," Working Papers CEB 12-016, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:sol:wpaper:2013/115381
    as

    Download full text from publisher

    File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/115381/1/wp12016.pdf
    File Function: wp12016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Govinda Timilsina & Christophe Gouvello & Massamba Thioye & Felix Dayo, 2010. "Clean Development Mechanism Potential and Challenges in Sub-Saharan Africa," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 15(1), pages 93-111, January.
    2. Simon Bisore & Walter Hecq, 2011. "Geographical distribution of Clean Development Mechanism (CDM) projects: Barriers analysis and actions to undertake for the African continent," ULB Institutional Repository 2013/136784, ULB -- Universite Libre de Bruxelles.
    3. Butzengeiger, Sonja, 2005. "Voluntary compensation of GHG emissions: Selection criteria and implications for the international climate policy system," HWWI Research Reports 1, Hamburg Institute of International Economics (HWWI).
    4. repec:wbk:wboper:13399 is not listed on IDEAS
    5. Jane Ellis & Sami Kamel, 2007. "Overcoming Barriers to Clean Development Mechanism Projects," OECD Papers, OECD Publishing, vol. 7(1), pages 1-50.
    6. Olsen, Karen Holm & Fenhann, Jørgen, 2008. "Sustainable development benefits of clean development mechanism projects: A new methodology for sustainability assessment based on text analysis of the project design documents submitted for validatio," Energy Policy, Elsevier, vol. 36(8), pages 2773-2784, August.
    7. Nicholas Linacre & Alexandre Kossoy & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2011," World Bank Publications - Reports 13400, The World Bank Group.
    8. Michaelowa, Axel & Jotzo, Frank, 2005. "Transaction costs, institutional rigidities and the size of the clean development mechanism," Energy Policy, Elsevier, vol. 33(4), pages 511-523, March.
    9. Axel Michaelowa & Marcus Stronzik & Frauke Eckermann & Alistair Hunt, 2003. "Transaction costs of the Kyoto Mechanisms," Climate Policy, Taylor & Francis Journals, vol. 3(3), pages 261-278, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emma Paulsson, 2009. "A review of the CDM literature: from fine-tuning to critical scrutiny?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(1), pages 63-80, February.
    2. Nicholas Tatrallyay & Martin Stadelmann, 2013. "Climate change mitigation and international finance: the effectiveness of the Clean Development Mechanism and the Global Environment Facility in India and Brazil," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 18(7), pages 903-919, October.
    3. Nhan Thanh Nguyen & Minh Ha-Duong & Sandra Greiner & Michael Mehling, 2011. "Implementing the Clean Development Mechanism in Vietnam: potential and limitations," Post-Print halshs-00654294, HAL.
    4. Wang, Qiang & Chen, Xi, 2013. "Rethinking and reshaping the climate policy: Literature review and proposed guidelines," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 469-477.
    5. U. Kalpagam & Karimullah, 2007. "India's Business Prospects in the Global Emissions Market," Global Business Review, International Management Institute, vol. 8(2), pages 237-250, December.
    6. Watts, David & Albornoz, Constanza & Watson, Andrea, 2015. "Clean Development Mechanism (CDM) after the first commitment period: Assessment of the world׳s portfolio and the role of Latin America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1176-1189.
    7. Sandrine Mathy & Odile Blanchard, 2016. "Proposal for a poverty-adaptation-mitigation window within the Green Climate Fund," Climate Policy, Taylor & Francis Journals, vol. 16(6), pages 752-767, August.
    8. Valentová, Michaela & Lízal, Lubomír & Knápek, Jaroslav, 2018. "Designing energy efficiency subsidy programmes: The factors of transaction costs," Energy Policy, Elsevier, vol. 120(C), pages 382-391.
    9. Vasa, Alexander & Neuhoff, Karsten, 2011. "The Role of CDM Post-2012," EconStor Research Reports 65871, ZBW - Leibniz Information Centre for Economics.
    10. Purohit, Pallav & Michaelowa, Axel, 2007. "CDM potential of bagasse cogeneration in India," Energy Policy, Elsevier, vol. 35(10), pages 4779-4798, October.
    11. Carmichael, David G. & Ballouz, Joseph J. & Balatbat, Maria C.A., 2015. "Improving the attractiveness of CDM projects through allowing and incorporating options," Energy Policy, Elsevier, vol. 86(C), pages 784-791.
    12. Pallav Purohit & Axel Michaelowa, 2008. "CDM potential of SPV lighting systems in India," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(1), pages 23-46, January.
    13. González Álvarez, José Francisco & Gonzalo de Grado, Jesús, 2016. "Study of a modern industrial low pressure turbine for electricity production employed in oxy-combustion cycles with CO2 capture purposes," Energy, Elsevier, vol. 107(C), pages 734-747.
    14. Karakosta, Charikleia & Doukas, Haris & Psarras, John, 2010. "Technology transfer through climate change: Setting a sustainable energy pattern," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(6), pages 1546-1557, August.
    15. Liu, Xuemei, 2008. "The monetary compensation mechanism: An alternative to the clean development mechanism," Ecological Economics, Elsevier, vol. 66(2-3), pages 289-297, June.
    16. Selvaretnam, Geethanjali & Thampanishvong, Kannika, 2010. "Future of the Clean Development Mechanism in Tackling Climate Change," SIRE Discussion Papers 2010-35, Scottish Institute for Research in Economics (SIRE).
    17. Kallbekken, Steffen & Flottorp, Line S. & Rive, Nathan, 2007. "CDM baseline approaches and carbon leakage," Energy Policy, Elsevier, vol. 35(8), pages 4154-4163, August.
    18. Burian, Martin, 2006. "The Clean Development Mechanism, sustainable develpment and its assessment," HWWA Reports 264, Hamburg Institute of International Economics (HWWA).
    19. Zavodov, Kirill, 2012. "Renewable energy investment and the clean development mechanism," Energy Policy, Elsevier, vol. 40(C), pages 81-89.
    20. Bortoletto, Wagner Wilson & Pacagnella Junior, Antonio Carlos & Cabello, Otavio Gomes, 2023. "Exploring the scientific literature on clean development mechanisms: A bibliometric analysis," Energy Policy, Elsevier, vol. 183(C).

    More about this item

    Keywords

    Climate change; CDM carbon offset market; Voluntary carbon offset; Competition; Complementarity; Standards; Carbon credits; Sustainable development;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sol:wpaper:2013/115381. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Benoit Pauwels (email available below). General contact details of provider: https://edirc.repec.org/data/cebulbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.