Business Case Studies & Business Publications

Carbon Credit Markets

Allayannis, George...

Technical Note

Carbon Credit Markets

Allayannis, George (Yiorgos); Tenguria, Susheel; Taylor, Matt

F-1583 | Published April 7, 2009 | 20 pages Technical Note

Collection: Darden School of Business

Add To Cart Buy Now

Product Details

This note discusses issues related to carbon markets: Emissions Trading Approaches (Cap-and-Trade, Baseline-and-Credit, and Offsets), Regulatory Framework (Kyoto Protocol), and two key mechanisms of credits creation, Clean Development Mechanism and Joint Implementation; creation and trading of carbon credits (CERs) (markets such as OTC and organized exchanges such as the Chicago Climate Exchange); examples of investors in the carbon market (carbon funds) and carbon indices established; recent developments in the carbon markets in the United States such as the Regional Greenhouse Gas Initiative and the Western Climate Initiative; and investment considerations and factors affecting pricing in the carbon markets.