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Strategic drivers for sustainable implementation of carbon trading in India

Author

Listed:
  • Shashank Bansal

    (Indian Institute of Technology (ISM) Dhanbad)

  • Mohul Mukhopadhyay

    (Indian Institute of Technology (ISM) Dhanbad)

  • Shipra Maurya

    (Indian Institute of Technology (ISM) Dhanbad)

Abstract

India is a major contributor to the global warming of the world, but there persists a prevalent lack of understanding of carbon trading (carbon credit derivative) as a commodity tradable on the stock exchange. The study brings into light the predominant drivers that can lead to the sustainable enhancement of efficacy and efficiency of carbon credit trading in India. The key drivers responsible for the sustainable implementation of the carbon credit derivative trading in India are identified and critically examined. The Analytic Hierarchy Process and Best–Worst Method have been used to rank the factors and sub-factors based on the priority (or weights) provided by the industry experts. The results indicate that the risk factors in the carbon credit derivative market are extremely crucial for enhancing sustainable trading of carbon credit derivatives closely followed by the reward and opportunity factors. The study is the first study which analyses the factors that can lead to the sustainable implementation of carbon credit trading in India. The study also contributes to the organizational strategy that carbon securitization would contribute significantly towards their financial as well as ecological sustainability.

Suggested Citation

  • Shashank Bansal & Mohul Mukhopadhyay & Shipra Maurya, 2023. "Strategic drivers for sustainable implementation of carbon trading in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4411-4435, May.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:5:d:10.1007_s10668-022-02205-w
    DOI: 10.1007/s10668-022-02205-w
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