Ambrosi, PhilippeLarson, Donald F.Dinar, ArielRahman, Shaikh MahfuzurEntler, Rebecca2012-06-012012-06-012008-10https://hdl.handle.net/10986/6895The scale of investment needed to slow greenhouse gas emissions is larger than governments can manage through transfers. Therefore, climate change policies rely heavily on markets and private capital. This is especially true in the case of the Kyoto Protocol with its provisions for trade and investment in joint projects. This paper describes institutions and policies important for new carbon markets and explains their origins. Research efforts that explore conceptual aspects of current policy are surveyed along with empirical studies that make predictions about how carbon markets will work and perform. The authors summarize early investment and price outcomes from newly formed markets and point out areas where markets have preformed as predicted and areas where markets remain incomplete. Overall the scale of carbon-market investment planned exceeds earlier expectations, but the geographic dispersion of investment is uneven and important opportunities for abatement remain untapped in some sectors, indicating a need for additional research on how investment markets work. How best to promote the development and deployment of new technologies is another promising area for study identified in the paper.CC BY 3.0 IGOABATEMENT COSTSADAPTATION FUNDADVERSE EFFECTSAFFORESTATIONAGGREGATE SUPPLYAIR POLLUTIONALTERNATIVE APPROACHANCILLARY BENEFITSANTHROPOGENIC GREENHOUSE GASESANTHROPOGENIC INTERFERENCEATMOSPHEREATMOSPHERIC CARBONATMOSPHERIC CARBON CONCENTRATIONSATMOSPHERIC CARBON DIOXIDEATMOSPHERIC CONCENTRATIONBIOLOGICAL DIVERSITYCARBONCARBON ACCUMULATIONCARBON DIOXIDECARBON EMISSIONCARBON EMISSIONSCARBON EQUIVALENTSCARBON FINANCINGCARBON INTENSITYCARBON LEAKAGECARBON MARKETCARBON MARKETSCARBON OFFSETCARBON PRICESCARBON PROJECTSCARBON SEQUESTRATIONCARBON STOCKSCARBON TAXCARBON TAXESCARBON TECHNOLOGIESCARBON TRADINGCARBON UNITSCEMENT INDUSTRYCERTIFIED EMISSIONSCERTIFIED EMISSIONS REDUCTIONSCERTIFIED PROJECT ACTIVITYCERTIFIED REDUCTIONSCLEAN AIRCLEAN COALCLEAN DEVELOPMENTCLEAN DEVELOPMENT MECHANISMCLEAN DEVELOPMENT MECHANISMSCLEAN ENERGYCLEAN ENERGY TECHNOLOGIESCLEAN TECHNOLOGYCLEAN TECHNOLOGY FUNDCLIMATECLIMATE CHANGECLIMATE CHANGE CONVENTIONCLIMATE CHANGE LITERATURECLIMATE CHANGE POLICIESCLIMATE CHANGE POLICYCLIMATE CHANGE TREATYCLIMATE MODELSCLIMATE POLICYCLIMATE SYSTEMCO2CO2 EMISSIONSCOALCONFERENCE OF THE PARTIESCONSUMPTION OF FOSSILCONVENTION ON BIOLOGICAL DIVERSITYCOSTS OF COMPLIANCEDEFORESTATIONDESERTIFICATIONDOMESTIC EMISSIONSEARTH SUMMITECOSYSTEMSEFFICIENT LIGHTINGELECTRICITYELECTRICITY SECTOREMISSIONEMISSION ABATEMENTEMISSION CEILINGSEMISSION CONTROLSEMISSION GOALSEMISSION LEVELSEMISSION LIMITATIONEMISSION LIMITSEMISSION PERMITSEMISSION REDUCTIONEMISSION REDUCTION GOALSEMISSION REDUCTION UNITSEMISSION TARGETSEMISSION TRADINGENERGY EFFICIENCYENERGY SYSTEMSENVIRONMENTAL BENEFITSFORESTRYFORESTSFOSSIL FUELFOSSIL FUELSFRAMEWORK CONVENTION ON CLIMATE CHANGEGAS PHASEGASESGASOLINEGDPGLOBAL EMISSIONSGLOBAL ENVIRONMENTGLOBAL ENVIRONMENT FACILITYGLOBAL WARMINGGREENHOUSEGREENHOUSE EFFECTGREENHOUSE GASGREENHOUSE GAS EMISSIONGREENHOUSE GAS EMISSION REDUCTIONSGREENHOUSE GAS EMISSIONSGREENHOUSE GAS MITIGATIONGREENHOUSE GAS SINKSGREENHOUSE GASESGROUND BIOMASSHOT AIRHYDROFLUOROCARBONSHYPOTHETICAL BASELINEINCOMEINTERGOVERNMENTAL PANEL ON CLIMATE CHANGEIPCCIRREVERSIBLE INVESTMENTSKYOTO PROTOCOLLAND USELEVEL OF EMISSIONSMARGINAL ABATEMENTMARGINAL ABATEMENT COSTMETHANEMORAL HAZARDNATURAL RESOURCESNEGOTIATIONSNET EMISSIONSNITROUS OXIDEOCEANSOILORGANIC CARBONOZONEOZONE LAYERPERFLUOROCARBONSPOLICY DECISIONSPOLLUTANTSPOLLUTION PROBLEMSPROGRAMSREFORESTATIONREGIONAL ELECTRICITYREGIONAL ELECTRICITY MARKETRENEWABLE ENERGYRENEWABLE ENERGY TECHNOLOGIESRESTRICTIONSRISING SEA LEVELSSEA LEVELSSHADOW PRICESOILSOLAR POWERSULFURSULFUR DIOXIDESULFUR DIOXIDE PERMITSULPHURSUSTAINABLE DEVELOPMENTTRADABLE CARBONTRADABLE PERMITTRADABLE PERMIT SYSTEMTRADABLE PERMITSTRANSACTION COSTSVOLUNTARY EMISSIONWATER VAPORWELFARE LOSSWELFARE LOSSESWINDWIND POWERWMOWORLD METEOROLOGICAL ORGANIZATIONWorld Bank10.1596/1813-9450-4761