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Copyright of Transformations in Business & Economics is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Human-induced climate change has become a prominent political issue, at both national and international levels, leading to the search for regulatory 'solutions'. Emissions trading has risen in popularity to become the most broadly favoured government strategy. Carbon permits have then quickly been developed as a serious financial instrument in markets turning over billions of dollars a year. In this article, I show how the reality of permit market operation is far removed from the assumptions of economic theory and the promise of saving resources by efficiently allocating emission reductions. The pervasiveness of Greenhouse Gas emissions, strong uncertainty and complexity combine to prevent economists from substantiating their theoretical claims of cost-effectiveness. Corporate power is shown to be a major force affecting emissions market operation and design. The potential for manipulation to achieve financial gain, while showing little regard for environmental or social consequences, is evident as markets have extended internationally and via trading offsets. At the individual level, there is the potential for emissions trading to have undesirable ethical and psychological impacts and to crowd out voluntary actions. I conclude that the focus on such markets is creating a distraction from the need for changing human behaviour, institutions and infrastructure. [ABSTRACT FROM AUTHOR]

This study explores the impact of political uncertainty on sustainable urban development by examining carbon emission trading systems (ETS) in four major markets in China (Beijing, Shanghai, Guangdong, and Hubei) from 2014 to 2022. As an alternative to carbon taxes, carbon ETS markets have become increasingly popular due to their success in reducing greenhouse gas emissions. However, their effectiveness is often hindered by political instability and uncertainty. Utilising logistic regression and AR(1)-GARCH estimations, we identify a negative relationship between political uncertainty and carbon trading volume. Our study also reveals significant variations in the responses of these markets to political uncertainty. The paper contributes to the understanding of how ETS markets operate in a complex and constantly changing political environment. We suggest that policymakers need to consider the impact of political uncertainty on carbon trading when designing and implementing urban policies that promote sustainable development. Additionally, our research contributes to the development of urban policies that can be effectively implemented in both developed and developing regions. • Local government official turnovers are used as the measurement of political uncertainty. • Daily transaction data from four carbon ETS markets (Beijing, Shanghai, Hubei and Guangdong) in China • Considered the probability and proportion of zero transaction day • Logistic regression and AR(1)-GARCH estimations • A negative relationship between political uncertainty and carbon transaction volume [ABSTRACT FROM AUTHOR]

The objective of a greenhouse gas (GHG) emissions trading scheme (ETS) is to reduce emissions by transitioning the economy away from the production and consumption of goods and services that are GHG intensive. A GHG ETS has been a public policy issue in Australia for over a decade. The latest policy initiative on an ETS is the proposed Carbon Pollution Reduction Scheme (CPRS). A substantial share of Australia’s total GHG reduction under the CPRS is expected to come from the electricity generation sector. This paper surveys the literature on investment behaviour under an ETS. It specifically focuses on the relationship between the design of an ETS and a generator’s decisions to invest in low emissions plant and retire high emissions plant. The proposed CPRS provides the context for presenting key findings along with the implications for the electricity generation sector’s transition to lower emissions plant. The literature shows that design features such as the method of allocating permits, the stringency of the emissions cap along with permit price uncertainty, provisions for banking, borrowing and internationally trading permits, and the credibility of emissions caps and policy uncertainty may all significantly impact on the investment and retirement behaviour of generators. [ABSTRACT FROM AUTHOR]

Emissions trading has created new forms of exchangeable property which become commodities when traded in markets designed to reduce greenhouse-gas emissions and mitigate climate change. This paper analyzes a set of social processes which influence who benefits from reductions in emissions generated by primary production from forest ecosystems. Informed by commodification literature, and property and access theory, we suggest that farmers and rural communities cannot derive full benefits from carbon sequestration because they lack key structural and relational mechanisms, such as capital, knowledge, expertise, technology, and, in some cases, even labour. We illustrate this argument by examining three ongoing carbon-forestry projects in China, Ecuador, and Mexico and we highlight its implications for future forestry mitigation projects and programmes. [ABSTRACT FROM AUTHOR]

This paper investigates how the Kyoto Protocol has framed political discourse and policy development of greenhouse gas mitigation in Australia. We argue that ‘Kyoto’ has created a veil over the climate issue in Australia in a number of ways. Firstly, its symbolic power has distracted attention from actual environmental outcomes while its accounting rules obscure the real level of carbon emissions and structural trends at the nation-state level. Secondly, a public policy tendency to commit to far off emission targets as a compromise to implementing legislation in the short term has also emerged on the back of Kyoto-style targets. Thirdly, Kyoto’s international flexibility mechanisms can lead to the diversion of mitigation investment away from the nation-state implementing carbon legislation. A final concern of the Kyoto approach is how it has shifted focus away from Australia as the world’s largest coal exporter towards China, its primary customer. While we recognise the crucial role aspirational targets and timetables play in capturing the imagination and coordinating action across nations, our central theme is that ‘Kyoto’ has overshadowed the implementation of other policies in Australia. Understanding how ‘Kyoto’ has framed debate and policy is thus crucial to promoting environmentally effective mitigation measures as nation-states move forward from COP15 in Copenhagen to forge a post-Kyoto international agreement. Recent elections in 2009 in Japan and America and developments at COP15 suggest positive scope for international action on climate change. However, the lesson from the 2007 election and subsequent events in Australia is a caution against elevating the symbolism of ‘Kyoto-style’ targets and timetables above the need for implementation of mitigation policies at the nation-state level. [Copyright &y& Elsevier]

Market-based emission trading schemes (ETSs) are widely used in the developed world to reduce greenhouse gas (GHG) emissions which are perceived as the source of global climate change. China, as the largest GHG emitter in the world, is committed to introducing an ETS to reduce emissions. Here we reviewed existing ETSs and sustainable energy policies worldwide as well as China's pilot programs. These studies were conducted in order to propose recommendations for national initiatives and strategies to be implemented in China in relation to climate change adaptation and mitigation. It has been shown that setting emission caps in the context of a national emission intensity target is difficult. However, implementing reliable systems for measurement, reporting, and verification of emissions are essential. A two-level management system (by central and provincial governments) for carbon trading is beneficial to ensure uniform standards and compliance while maintaining flexibility. Persistent political support from, and effective coordination of, policies by the government are crucial. In addition, strengthening of institutional innovation, and the establishment of a national GHG emissions information system, are of equal importance. This vital information could provide a great opportunity for China to re-define its economic growth and take global leadership in combatting climate change. [ABSTRACT FROM AUTHOR]

The article examines the potential constitutional bases for Canada's emissions trading regime. It provides an overview of the three heads of Canada's federal power such as the criminal law, trade and commerce, and the national concern branch of the peace, order, and good governance power. Information about the government's explicit policy about greenhouse gas reduction is presented.

Carbon emissions trading markets are unrealistically treated as either voluntary or mandatory. Yet most trading incorporates some voluntary and some regulatory features and there is developing interaction. Diverse emissions trading markets include an array of voluntary aspects. Voluntary features of trading should be evaluated on their own merit according to the context of the scheme in question. [ABSTRACT FROM AUTHOR]

Markets can play a key role in mitigating the effects of climate change by providing added flexibility, allowing emissions reductions to occur at a lower cost while maintaining a set level of emissions reductions. With careful regulatory design, both industry and consumers can benefit from low costs. We review the state of carbon trading globally and in the United States, the West and California. New policies and regulations related to AB32, which mandates reductions in California's greenhouse-gas emissions to 1990 levels by 2020, are beginning to take shape. California has a unique opportunity to establish a new ethos for carbon trading by acknowledging unavoidable mitigation costs, and by designing a market-based solution that is fair, equitable and transparent, and protects the most vulnerable members of society. [ABSTRACT FROM AUTHOR]