Voluntary carbon market modeling based on economic experiments
Artur R. Nagapetyan
Far Eastern Federal University, Vladivostok, Russia
Opposed to enforcement forms of governmental influence on the producers of goods and services with the aim of providing compensation for their carbon emissions above the established standards per unit of output, voluntary carbon markets require use only market-based methods of regulation. Enterprises should have natural market incentives to reduce carbon emissions by creating demand for carbon re-emission services and, more importantly, introducing innovative resource-saving production technologies. The key condition for creating such incentives seems to be the differentiation of consumers attitude to various producers based on compliance with the relevant standards.
Thus, this project proposes a series of pilot studies aimed at clarifying the following issues:
1. How do demographic, socio-economic and other factors affect the willingness of the population to give preference to goods and services that have been complied with (including the purchase of offsets in the case of emission standards are exceeded) international carbon emissions standards per unit of output with other things being equal?
2. How do macroeconomic, industrial, institutional and other factors affect the readiness of producers to comply with international standards for carbon emissions per unit of output?
3. What methods of ensuring the supply of carbon offsets (methods of reemission) are the most effective in modern conditions (in theory and in practice, including commercial relevance)?
Accordingly, the requested funding which is necessary for conducting and analyzing the results of the pilot studies will allow the development of financial model for the voluntary carbon market in the Far East of the Russian Federation to be presented at the Eastern Economic Forum 2018.