This paper presents an assessment of the relative efficacy of three key instruments – baselines, trade ratios and limits - which are under policy discussion in the design of carbon offset programs. We rank the instruments by their implications for total emissions, economic efficiency, and...

This paper presents an assessment of the relative efficacy of three key instruments; baselines, trade ratios, and limits; which are under policy discussion in the design of carbon offset programs. Efficiency and distributional considerations are both present in choosing between them. We analyze...

Ideally, carbon offset programs issue each project a number of offset credits equal to the number of reductions in carbon emissions it achieves. Realistically, any one project likely receives more or less offset credits than the emissions it reduces. Therefore, the net emissions impact of offset...

Climate change mitigation programs classify two types of carbon offsets: Additional and non-additional. Additional offsets are offsets that correspond to actual reductions in emissions. In contrast, non-additional offsets are offsets that do not correspond to emissions reductions. These offsets...

Incorporating carbon offsets in the design of cap-and-trade programs remains a controversial issue because of its potential unintended impacts on emissions. At the heart of this discussion is the issue of crediting of emissions reductions. Projects can be correctly, over- or under-credited for...

Recent studies that compare the efficiency and distributional impacts of alternative instruments to curb sprawl typically ignore what to do with the revenues from anti-sprawl policies, such as development taxes. This paper extends first-best analysis of development taxes aimed at preserving land...