ECON 102 Lecture Notes - Lecture 23: Clean Development Mechanism, Carbon Credit, Extra Credits
Document Summary
Carbon credits as an example of the commodification of nature. Allocating and trading credits for pollution like carbon = creating a market for. Therefore price of carbon credit = value for avoiding the negative impact environmental protection carbon has on nature and its ability to provide ecosystem services. Video 1: how does the emission trading scheme work? have. Carbon unit = 1 tonne of emissions. Kyoto set limit for total amount of carbon the signed countries can emit. Each country receives their share of carbon credits, cannot emit more than they. If a country becomes efficient and has a surplus of credits, can trade to countries. On a smaller scale, an individual factory and become efficient and trade extra credits, or can invest in efficiency in a third party country and can receive more credits from the un who are in need. Like all commodities, important questions about what is trade and how those markets are set up and operate.
