i would assume offsets have to be purchased continuously - that is, you cannot purchase an offset once and be done with it forever.
I also assume that there's limited offsets that could be purchased, and it's not growing unless money is put into making more offsets possible (e.g., enlarging a rain forest, not merely protecting it).
This means every year, there would be more competition to purchase offsets from all participants, raising the price of offset. Eventually, the price would be high enough that it's more profitable just save emissions yourself - e.g, those pilot projects.
But if you predict this, you would start doing those pilot projects sooner, and beat your competition!
So why isn't this true today? The assumptions i made must be wrong - so which assumption is wrong?
i would assume offsets have to be purchased continuously - that is, you cannot purchase an offset once and be done with it forever.
I also assume that there's limited offsets that could be purchased, and it's not growing unless money is put into making more offsets possible (e.g., enlarging a rain forest, not merely protecting it).
This means every year, there would be more competition to purchase offsets from all participants, raising the price of offset. Eventually, the price would be high enough that it's more profitable just save emissions yourself - e.g, those pilot projects.
But if you predict this, you would start doing those pilot projects sooner, and beat your competition!
So why isn't this true today? The assumptions i made must be wrong - so which assumption is wrong?