Monday, March 10, 2008

Carbon market

Since many people pay attention on environment movement and reduce provide carbon, carbon market becoming bigger and bigger. Businessmen think this is a good investment opportunity, environmentalists think this is an opportunity to protect environment. As let carbon dioxide are limited, countries begin to trade their carbon credit, they may trade their credit by money or other goods, therefore their citizens and industries both get benefit form trading. Also carbon market potential are huge, as current price of carbon is $3.50 per tone, this price is way lower than rock oil and other goods that provide energy, as result countries and firms wants to use this cheap goods to provide energy. In short term, carbon price will skyrocket. In long term, as the quantity of generate carbon dioxide are limited, the cost of provide energy by carbon are becoming higher, the price will fall down and quantity of carbon supply will decrease too.

No comments: