Uncooperative Carbon: Examining the Material Foundation of Global Carbon Market

• In Event: 355 - Section on Economic Sociology Roundtable Session (one-hour).
  In Refereed Roundtable: Table 13. Varieties of Moral Markets

Abstract

For a carbon market to function, a stable measurement on carbon emission is essential. Yet, carbon measurement is characterized by less than desirable accuracy and laden with uncertainties. Based on 60 in-depth interviews from the European Union, the United States, and China, the paper examines the difficulties in quantifying power sector carbon emissions. The reasons to focus on power sector are threefold: 1) it is the most common emission source 2) it is the most understood emission source 3) there are divergent measurement practices in Europe and the United States. Most facilities in the EU ETS use the more traditional calculation method, based on mass or heat balance; meanwhile, many American companies are required to use measurement method with the Continuous Emission Monitoring System (CEMS). My investigation shows that the discrepancies between the two different measurement methods are significant. This paper traces the regulatory dynamics that led to the divergence in practices across Atlantic, and discusses how materiality might constrain the commodification of carbon emissions. This discussion has important implications as the carbon market is moving into new emissions sources, such as agriculture and land use change, and “linking” carbon markets in different parts of the world is on the agenda.

Author

• John Liu, University of Wisconsin-Madison