The size of the carbon market study: discussion

This is an invited discussion on the Morozova and Stuart’s paper “The Size of the Carbon Market Study”. It suggests a number of issues for consideration in appropriately estimating the size of carbon markets. They include Annex 1 (industrialised) countries’ baseline emissions; qualitative and quantitative assessments of the role of carbon sinks; and the difficulty from an economic and legal perspective of interpreting and inferring impacts in relation to specific provisions attached to each flexibility mechanism for regulating the extent of their use.