Economics Carbon Trading Questions
The key factors influencing the price of carbon credits include the overall demand and supply of carbon credits in the market, the level of government regulation and policies related to carbon emissions, the cost of reducing carbon emissions, the availability and cost of alternative energy sources, the level of economic growth and industrial activity, and the level of investor confidence in the carbon market. Additionally, international agreements and commitments to reduce carbon emissions, such as the Paris Agreement, can also impact the price of carbon credits.