With global efforts to control carbon emissions gaining momentum, understanding the impact of carbon pricing on firms’ behavior becomes crucial. This article presents a comprehensive framework revealing that while carbon pricing mechanisms effectively reduce firms’ carbon emissions, the increasing compliance costs also influence their investment decisions. Specifically, polluting firms tend to prioritize short-term abatement measures...Read More

The idea behind voluntary carbon offsets seems simple enough: Project developers undertake some kind of activity to either prevent carbon emissions or remove them from the atmosphere, like building a solar farm or planting trees. The project generates carbon credits, approved by a handful of unregulated carbon crediting programs and purchased by companies, governments, or...Read More