Carbon trading. Please answer all of the questions given below.
(Note** please do not give 1/2 answer! if you can't answer all of them, please leave it for others. thanks!)

1). What are carbon permits, credits and offsets?

2). How did the EU-ETS carbon price evolve during 2013-2020? Why is carbon price volatility a problem?

3). What are TAC? What are MAC?

4). Explain the grandfathering principle used to allocate permits.

5). Why is there reason for trade when the MAC’s of different firms or countries are different?

6). Give two reasons why a carbon emission permit is not a well-defined commodity (as, for instance, a train ticket).

7). Explain why it is impossible to express all global warming costs in monetary terms. (Answer: what is the social rate of discount? What is the money value of ecosystem damage? Etc.)

8). Explain why the carbon market is not a perfectly competitive market?

9). What is the problem with carbon offsets according to Spash?

10). Carbon pricing should be comprehensive. What does this mean?

11). Explain how carbon pricing may stimulate undesirable behavior?

12). How do environmental motivations get crowded out? Explain in detail.

Answer rating: 100% (QA)

1 A carbon credit is a tradable permit or certificate that provides the holder of the credit the right to emit one ton of carbon dioxide or an equivalent of another greenhouse gas its essentially an o... View the full answer