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Lecture 18

Lecture 18, Mandatory and Voluntary Carbon Markets in 2008, Justin E. Felt. This is a description of market principles and the motivation of using a carbon market as an environmental policy tool. Then there is a discussion of how the Kyoto Protocol was written and modified in negotiations in anticipation of a carbon markets. The lecture ends with a summary of current carbon markets and discussion of the possible future of carbon markets.

PDF Lecture 18

Lecture Outline

  • Cap and Trade Explanation
  • Kyoto Protocol
    • Flexible Mechanisms
  • Trading Volumes and Prices
  • North American Carbon Market
  • Criticisms

Reading assigned:

Ecosystem Marketplace: State of Voluntary Markets (2007)

World Bank: Carbon Markets Trends and Update (2007) Assigned Pages 3-7.

Additional Relevant Reading:

Stavins: Lessons Learned from the Sulfur Market


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