March 1, 2012
Peer-Reviewed Publication — Economics Bulletin (2012)
Co-authored with Amy Ando. On pollution monitoring technology and greenhouse gas offset markets.
Peer-reviewed publication · Economics Bulletin · 2012 · Co-authored with Amy Ando
Abstract
This paper examines how improved monitoring technology enhances the functioning of greenhouse gas offset markets. The analysis focuses on farmers reducing nitrous oxide emissions from agricultural land and selling offset permits into carbon markets.
Using simulation methods, the paper shows that using technology to increase the accuracy of emission estimates could yield economic benefits reaching $138 per 100-acre field — a meaningful gain for market participants and regulators designing offset policy.
The findings have direct implications for how policymakers structure verification and monitoring requirements in voluntary and compliance carbon markets, where measurement accuracy is a binding constraint on market depth and credibility.
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