PCT Market Development – An Opening to New Employment & Entrepreneurial Opportunities in Green Operations?

Carbon emissions are a major component of greenhouse gas emissions in developed countries and governments of these countries are in the process of devising policies and procedures to reduce their carbon emissions in various sectors of their economies. Transportation and household sectors' energy use for heating and cooling contributes 20% to 40 % of their total emissions in the USA and UK respectively. Policy researchers in the UK proposed personal carbon trading (PCT) schemes to reduce carbon emissions, and as per their proposals every individual in the country would be allocated a fixed quota of personal carbon trading allowance every year. Those who need more than their allocated quota can buy it from those who save part of their allocated quota for sale in the market. However, the literature reviewed related to PCT allowance indicates the unique nature of PCT allowance, and its market. The nature of PCT allowance is significantly different from corporate shares, and its market is also different from the share market. In this paper, the uniqueness of PCT allowance certificate/s and its market is highlighted along with the basic policy tools needed to develop and facilitate efficient PCT market operations. Understanding the uniqueness of PCT allowance, its market, and the implementation of suitable policy tools to make market operations efficient can open new employment and entrepreneurial opportunities for green finance and green operations. This paper may be useful to researchers, professionals, entrepreneurs, academicians, and government policy makers.