Analysis of Carbon Credits' Transactions: An Empirical Study

Posted: 27 Aug 2007

See all articles by Marco Conejero

Marco Conejero

PENSA Ribeirao Preto - Agribusiness Intelligence Center; Markestrat - Center of Research and Projects in Marketing & Strategy

Marcos Fava Neves

University of São Paulo (USP) - Business Administration

Date Written: June 2006

Abstract

The Kyoto Protocol was approved in February 2005 and the carbon market without rules, played by pioneer companies interested in learning how to do with their corporate image, started working towards a formality. As Certified Emissions Reduction (CER) market has already established Institutional Environment, it is interesting to study, based on the Transaction Cost Economics (TCE) theory, how the transaction costs induce alternative ways of production, in particular the contracts between private companies, with CDM (Clean Development Mechanism) projects, and the commercialization channels developed by multilateral organizations. For this, the research uses the case studies method to obtain private information about the transactions of CER, and their contracts between Brazilian companies and a multilateral organization, the World Bank. A result is that, in contrast with the spot market relationship, the Brazilian CDM projects benefited - in terms of reduction of transaction costs - with the CERs transactions (contracts) involving the World Bank since this bank does all distribution channel functions except the acquisition of CERs property rights.

Keywords: Kyoto Protocol, Clean Development Mechanism, Transaction Costs Economics, Distribution Channels

JEL Classification: D23, L22, M21, Q25, Q40

Suggested Citation

Conejero, Marco Antonio and Fava Neves, Marcos, Analysis of Carbon Credits' Transactions: An Empirical Study (June 2006). Available at SSRN: https://ssrn.com/abstract=1009649

Marco Antonio Conejero (Contact Author)

PENSA Ribeirao Preto - Agribusiness Intelligence Center ( email )

Brazil
55 16 39116088 (Phone)
55 16 39116088 (Fax)

HOME PAGE: http://www.pensa.org.br

Markestrat - Center of Research and Projects in Marketing & Strategy ( email )

Av. Presidente Vargas, 2001 - Sala 144
Ribeirão Preto-SP, 14020-260
Brazil
55 16 39116088 (Phone)
55 16 39116088 (Fax)

HOME PAGE: http://www.markestrat.org

Marcos Fava Neves

University of São Paulo (USP) - Business Administration ( email )

FEARP Av dos Bandeirantes 3900
Ribeirao Preto, Sao Paulo, 14020-740
Brazil
55-16-6023892 (Phone)

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