Climate change and carbon markets: a panoramic history
International 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.
|Date of creation:||Jul 2011|
|Contact details of provider:|| Postal: Houghton Street, London WC2A 2AE|
Phone: +44 (020) 7405 7686
Web page: http://www.lse.ac.uk/grantham.
More information through EDIRC
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.:
- Martin L. Weitzman, 1974.
"Prices vs. Quantities,"
Review of Economic Studies,
Oxford University Press, vol. 41(4), pages 477-491.
- M. L. Weitzman, 1973. "Prices vs. Quantities," Working papers 106, Massachusetts Institute of Technology (MIT), Department of Economics.
- World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808, April.
- Nicholas Linacre & Alexandre Kossoy & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2011," World Bank Other Operational Studies 13400, The World Bank.
- Ellerman,A. Denny & Convery,Frank J. & de Perthuis,Christian, 2010. "Pricing Carbon," Cambridge Books, Cambridge University Press, number 9780521196475, Diciembre.
- Hulme,Mike, 2009. "Why We Disagree about Climate Change," Cambridge Books, Cambridge University Press, number 9780521727327, Diciembre.
- Woerdman, Edwin, 2001. "Emissions trading and transaction costs: analyzing the flaws in the discussion," Ecological Economics, Elsevier, vol. 38(2), pages 293-304, August.
- Mitchell Polinsky, A. & Shavell, Steven, 1982. "Pigouvian taxation with administrative costs," Journal of Public Economics, Elsevier, vol. 19(3), pages 385-394, December.
- A. Mitchell Polinsky & Steven Shavell, 1981. "Pigouvian Taxation with Administrative Costs," NBER Working Papers 0742, National Bureau of Economic Research, Inc.
- Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
- Nordhaus, William D, 1974. "Resources as a Constraint on Growth," American Economic Review, American Economic Association, vol. 64(2), pages 22-26, May.
- Hulme,Mike, 2009. "Why We Disagree about Climate Change," Cambridge Books, Cambridge University Press, number 9780521898690, Diciembre.
- repec:dau:papers:123456789/10174 is not listed on IDEAS
- Yohe, Gary Wynn, 1977. "Comparisons of price and quantity controls: A survey," Journal of Comparative Economics, Elsevier, vol. 1(3), pages 213-233, September.
- Nordhaus, William D, 1977. "Economic Growth and Climate: The Carbon Dioxide Problem," American Economic Review, American Economic Association, vol. 67(1), pages 341-346, 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.
- Roberts, Marc J. & Spence, Michael, 1976. "Effluent charges and licenses under uncertainty," Journal of Public Economics, Elsevier, vol. 5(3-4), pages 193-208.
- 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.
- 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.
- 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. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:lsg:lsgwps:wp52. See general information about how to correct material in RePEc.
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.