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Edited by Oksana Mont
Edited by Joseph Sarkis
Edited by Sabri Boubaker, Douglas Cumming and Duc K. Nguyen
Joseph R. Mason
While some have bemoaned CO2 markets’ performance due to low prices – that is, too low to deter emissions – a potentially bigger threat is that such markets develop to provide binding constraints arising not from market pricing but from non-fundamental factors like fraud and rent-seeking. Investor fraud, corporate fraud, and counterfeiting and theft are already well-known to these markets, with little in the way of specific oversight and protection. If we are to expect meaningful market development, it makes sense to insulate such markets rent-seeking, generally, including various forms of fraud, counterfeiting, and permit theft that have already manifested in the sector. Only by restraining such influences can we provide a smooth-functioning CO2 market that can be the basis of economic growth, without exposing the broader economy to the potential for commodity market panics and crashes.