Library Header Image
LSE Research Online LSE Library Services

Designing carbon markets, part I: carbon markets in time

Fankhauser, Samuel ORCID: 0000-0003-2100-7888 and Hepburn, Cameron (2010) Designing carbon markets, part I: carbon markets in time. Energy Policy, 38 (8). pp. 4363-4370. ISSN 0301-4215

PDF - Accepted Version
Download (972kB) | Preview
Identification Number: 10.1016/j.enpol.2010.03.064


This paper analyses the design of carbon markets in time (i.e., intertemporally). It is part of a twin set of papers that ask, starting from first principles, what an optimal global carbon market would look like by around 2030. Our focus is on firm-level cap-and-trade systems, although much of what we say would also apply to government-level trading and carbon offset schemes. We examine the "first principles" of temporal design that would help to maximise flexibility and to minimise costs, including banking and borrowing and other mechanisms to provide greater carbon price predictability and credibility over time.

Item Type: Article
Official URL:
Additional Information: © 2010 Elsevier Ltd
Divisions: Grantham Research Institute
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
H Social Sciences > HB Economic Theory
Date Deposited: 05 Aug 2010 10:28
Last Modified: 12 Apr 2024 21:39
Funders: Grantham Foundation for the Protection of the Environment, Economic and Social Research Council, Munich Re

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics