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Emission Permit Trading: A Theoretical Analysis

Emission Permit Trading: A Theoretical Analysis

Poulomi Khasnobis, Sanjukta Niyogi
Copyright: © 2019 |Pages: 17
ISBN13: 9781522585473|ISBN10: 1522585478|EISBN13: 9781522585497
DOI: 10.4018/978-1-5225-8547-3.ch012
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MLA

Khasnobis, Poulomi, and Sanjukta Niyogi. "Emission Permit Trading: A Theoretical Analysis." Handbook of Research on Economic and Political Implications of Green Trading and Energy Use, edited by Ramesh Chandra Das, IGI Global, 2019, pp. 220-236. https://doi.org/10.4018/978-1-5225-8547-3.ch012

APA

Khasnobis, P. & Niyogi, S. (2019). Emission Permit Trading: A Theoretical Analysis. In R. Das (Ed.), Handbook of Research on Economic and Political Implications of Green Trading and Energy Use (pp. 220-236). IGI Global. https://doi.org/10.4018/978-1-5225-8547-3.ch012

Chicago

Khasnobis, Poulomi, and Sanjukta Niyogi. "Emission Permit Trading: A Theoretical Analysis." In Handbook of Research on Economic and Political Implications of Green Trading and Energy Use, edited by Ramesh Chandra Das, 220-236. Hershey, PA: IGI Global, 2019. https://doi.org/10.4018/978-1-5225-8547-3.ch012

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Abstract

After the Kyoto Protocol, the new concept of carbon trading emerged. The carbon emission can be controlled by cap and tax system. Cap and trade is the permit that determines the maximum amounts of carbon emission. Carbon tax is imposed on amount of carbon emission. Other instruments of carbon emission are border adjustment and cash payment. Carbon permit is determined by market mechanism through demand and supply. Generally, there are two types of markets: regulated and voluntary. The chapter analyzes mechanisms and discusses the mitigating policies like Kyoto Protocol and tries to examine all aspects related to carbon leakage. The developed countries import carbon-intensive goods. Underdeveloped countries produce and export carbon-intensive goods. In this study, the authors show the prospect of carbon trading and various effects of carbon emission reduction policies on a theoretical framework.

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