Blockchain Technologies: Potential Use of Cryptographic Protocol in Financing Forests Conservation Stewardship

Environmental markets that consider trade-offs of benefits flow and conservation burdens among economic units contributes to the sustainability of natural resource capital. Despite the benefits of environmental markets, the existence of bureaucratic processes in ecosystem financing such as Payment for Environmental Services creates a perverse market structure, which impedes the efforts of internalising environmental costs through distributional effects of conservation rewards and burdens among economic units. Therefore, this paper explores the applicability of using cryptographic protocols in blockchain technologies as a paradigm shift in financing conservation stewardship at the micro-level. Secondary data from documented literature was used as the source of information in this study. Systematic searches on different websites were used to identify relevant scientific papers, journals, abstracts, reports and presentations that resonated with the theme of this study. To gain hands-on information regarding blockchain technologies, the snowballing research design was used to identify individuals with technological know-how on the functionality and blockchain operability. Blockchain technologies can be merited because it portrays a high degree of transparency and trustworthiness among economic units when used in environmental markets. Therefore, designing a robust cryptographic protocol that facilitates efficient trade-offs of conservation rewards and burdens in present environmental market creates incentives for the resource conservation and protection.

Part VIII Compliance, Implementation, and Effectiveness, Ch.53 Market Mechanisms

This chapter provides an overview of market mechanisms and their contemporary role in international environmental law. It considers the conceptual foundations and theoretical rationale of market mechanisms when deployed for environmental ends, citing the main arguments levelled on different sides of the debate. As social constructs built on legal rights and obligations, moreover, markets rely on a sound regulatory framework for their efficient operation. With environmental markets, this need for legal parameters is further accentuated by the fact that the article of trade is itself a regulatory artifice. The chapter then looks at legal issues arising in the design and implementation of market mechanisms. It surveys the most important environmental markets currently in place at the international level. The chapter concludes with an outlook on the future role of market mechanisms in international environmental law.

Where Is Pollution Moving? Environmental Markets and Environmental Justice

Do US air pollution offset markets disproportionately relocate pollution to or from low-income or minority communities? Concerns about an equal distribution of environmental quality across communities--environmental justice--have growing policy influence. We relate prices and quantities of offset transactions to the demographics of the communities surrounding polluting plants. We find little association of offset prices or offset-induced movements in pollution with the share of a community that is Black or Hispanic or with mean household income. This analysis of 12 prominent offset markets suggests that they do not substantially increase or decrease the equity of environmental outcomes.