Across the United States, more and more companies are pledging to zero out their greenhouse gas emissions using “voluntary carbon offsets” — credits that represent some amount of climate pollution that’s either prevented or removed from the atmosphere. These credits, bought and sold on unregulated markets that are expected to be worth up to $100 billion...Read More

With global efforts to control carbon emissions gaining momentum, understanding the impact of carbon pricing on firms’ behavior becomes crucial. This article presents a comprehensive framework revealing that while carbon pricing mechanisms effectively reduce firms’ carbon emissions, the increasing compliance costs also influence their investment decisions. Specifically, polluting firms tend to prioritize short-term abatement measures...Read More