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Lessons offered by emerging carbon trading markets
Date:3/21/2014

lied to new markets such as the one in California, the one in Quebec, or the ones developing in China," Newell said. "As a result, they will hopefully avoid some of the problems that others have dealt with in the past."

The European Union's Emission Trading System (EU-ETS) has seen significant challenges recently, with prices falling to historic lows in 2013. Australia's carbon market is slated to be repealed this summer, after the new governing party makes good on its election promise to abolish it.

Still, such issues haven't stopped the development of new programs. China recently saw the establishment of five regional pilot carbon markets, nearly doubling the volume of emissions covered by existing trading programs. Kazakhstan also has a pilot program in place, and South Korea plans a new market. After successful launches in 2013, California and Quebec have recently linked their markets.

The authors review how these programs are addressing concerns such as uncertainty over carbon market prices and how to approach differences in policy and structure across programs.

"We are learning from the problems and successes of the past," said co-author William Pizer, an Associate Professor of Public Policy, Economics and Environment at Duke's Sanford School of Public Policy and a faculty fellow at the Nicholas Institute for Environmental Policy Solutions. "As governments revise existing market rules or new markets arrive, the system evolves. It's all being tried and updated in real time."


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Contact: Margaret Lillard
ma.lillard@duke.edu
919-613-0436
Duke University
Source:Eurekalert

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