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Unpublished Paper
Carbon Offset Provision with Guilt-Ridden Consumers
(2009)
  • Joshua S Gans
  • Vivienne Groves
Abstract

Carbon offsets can be purchased by consumers who wish to mitigate their emissions. In a model where the demand for such offsets is driven by consumers who feel guilt about their emissions, it is show that the introduction of offsets are complements to existing „dirty‟ consumption and can cause such consumption to increase. Net emissions are shown to decline, however, regardless of whether prices are regulated, chosen strategically or offset prices are endogenous. One special case is illustrated whereby emissions might rise if „dirty‟ producers can engage in strategic commitments to impact on offset markets.

Keywords
  • carbon offsets,
  • global warming,
  • environment,
  • electricity
Disciplines
Publication Date
March, 2009
Citation Information
Joshua S Gans and Vivienne Groves. "Carbon Offset Provision with Guilt-Ridden Consumers" (2009)
Available at: http://works.bepress.com/joshuagans/8/