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| Fulton, Murray E.; Mihal, Daniela. |
| Carbon offset markets have been suggested as a cost effective means of reducing GHG emissions. This paper develops a model of heterogeneous emitters and producers to examine the consequences of non-compliance on the performance of the carbon-offset market. The analysis begins with the derivation of demand and supply curves for carbon offsets based on perfect compliance. The paper then considers the impact of non-compliance by producers on the supply of carbon offsets. Results show that the extent of producers' non-compliance decreases with an increase in the audit probability and/or an increase in the penalty per unit of non-compliance. In addition, the number of producers participating in the carbon offsets market is shown to increase with an increase in... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Environmental Economics and Policy. |
| Ano: 2005 |
URL: http://purl.umn.edu/19179 |
