Effectiveness and legitimacy of forest carbon standards in the OTC voluntary carbon market
Author Information
Author(s): Eduard Merger, Till Pistorius
Primary Institution: University of Freiburg
Hypothesis
This study aims to identify and analyze the characteristics and indicators that determine the efficiency and organizational legitimacy of standards for afforestation/reforestation carbon projects.
Conclusion
Despite the fragmented and immature state of the OTC market, standards act as 'market-making' intermediaries and contribute to the quality and transparency of the OTC market.
Supporting Evidence
- Standards provide quality assurance mechanisms that reduce information asymmetries and moral hazard.
- Market actors regard certification and standards as crucial for market functionality.
- The variety of standards creates confusion among project developers and buyers.
Takeaway
This study looks at how rules for carbon credits from forests can help make sure they are good and trustworthy, even though there are many different rules that can confuse people.
Methodology
The study used qualitative research design, including a literature review and 13 structured expert interviews with market actors in the forest carbon sector.
Potential Biases
Potential bias from the selection of interviewees who may have vested interests in the outcomes.
Limitations
The study is based on a limited number of interviews and may not capture all perspectives in the market.
Participant Demographics
Interviewees included project developers, buyers of forest carbon credits, and quality guarantors from NGOs and academia.
Digital Object Identifier (DOI)
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