Carbon markets, like other commodity markets, are volatile. They react to stochastic “disequilibrium” spot prices, which may be affected by inadequate policies, speculations and bubbles. The market-based emission trading, therefore, does not necessarily minimize abatement costs and achieve...

100-year Global Warming Potentials (GWPs) are used almost universally to compare emissions of greenhouse gases in national inventories and reduction targets. GWPs have been criticised on several grounds, but little work has been done to determine global mitigation costs under alternative...