Carbon markets and climate finance

Part of Research Programme 3|

Topic lead: Luca Taschini|

This research topic continues the work of the existing LSE carbon markets group.

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Drawing on insights from financial economics about market structure and imperfections, the research aims to understand – both theoretically and practically – the functioning and design of markets for permits, including questions of cost containment mechanisms and the linkage of markets.

Beyond carbon markets, there is a need to better understand market-based instruments and finance tools more broadly, including budget-compatible policies to promote technology adoption and different ways to unlock private capital for low-carbon investment (eg through green bonds or renewable energy policies).

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