We study how international environmental agreements can take advantage of domestic time-inconsistency problems. Policymakers often prefer future policies to be sustainable, but are tempted to invest less when being in office. We find the equilibrium number of signatory countries to be higher...

We study pricing in the voluntary carbon market (VCM) using a novel proprietary dataset of sales of emission reduction certificates (credits) by a leading VCM dealer. We document extraordinary price dispersion, with carbon credits trading between a few cents and $100 per ton of CO2. Prices are...

This paper explores the possibility of using voluntary carbon credits to retire coal-fired power plants early. It introduces carbon emission trading using the example of the substantial European emissions trading market. It presents recommendations for phasing out coal power plants and discusses...