Is offsetting your carbon footprint always a good thing? This column questions the criteria used to label carbon footprints, arguing they can disadvantage developing countries. It suggests a variety of ways to overcome that problem.
Economists usually think of labelling as a good thing – an increase in the information set. But what if the science behind the labelling is iffy? What if the organisations doing the labelling are responding primarily to incentives stemming from developed country markets? When it comes to the recent trend towards “carbon footprinting” everything, both of these issues arise.
There is a risk that carbon accounting and labelling instruments will not properly represent the complexity of production systems in developing countries and so adversely affect their export opportunities without a bona fide environmental justification.
See full Article.
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