Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Accepted Manuscript

Publication Date

2012

Journal or Book Title

Annual Review of Resource Economics

Volume

4

First Page or Article ID Number

145

Last Page

160

DOI

10.1146/annurev-resource-083110-120016

Abstract

Although climate change has largely been removed from the federal policy agenda of the United States in the near term, the continued reliance on fossil fuels as a dominant energy source leaves many analysts to conclude that climate policy will eventually reappear on that agenda. We present a review of recent research related to the design and implementation of one instrument for greenhouse gas (GHG) reduction: offsets. As these are implemented, policy makers must understand the way these programs work. In this review, we describe the basic features of carbon offset markets, along with the potential supply of offsets from agricultural sources and associated cost considerations. In this discussion we highlight the role of institutional design of contracts and transactions costs. We then turn to the benefits of including offsets in policies to reduce GHGs and complete the review with a discussion of the challenges in implementing the programs.

Comments

This is a manuscript of an article from Annual Review of Resource Economics, 4(2012); 145-160. DOI: 10.1146/annurev-resource-083110-120016. Posted with permission.

Copyright Owner

Annual Reviews

Language

en

File Format

application/pdf