This study analyzes how environmental transaction costs affect the speed of adjustment to the target financial debt. By applying GMM and panel data on European listed firms over the period 2005–2015, we find that the speed of adjustment is slower for carbon emitters. These results suggest that...

'Against all odds, the CDM has shown that market mechanisms for greenhouse gas reduction in developing countries can work. Nevertheless, as Paula Castro explains convincingly, the CDM is no "magic bullet". Advanced developing countries need to be "weaned off" the CDM in order to take up...

Under the Kyoto Protocol, developing countries can voluntarily participate in climate change mitigation through the Clean Development Mechanism (CDM), where emission reduction credits from projects in developing countries are bought by industrialized countries to meet their own commitments....