Question

According to Bumpus and Liverman, what is the process for producing a carbon offset commodity?

a) Extracting carbon from the atmosphere and storing it underground
b) Reducing emissions through energy efficiency projects and selling the reduction as a commodity
c) Trading carbon credits on the open market to offset emissions
d) Imposing a tax on carbon-intensive industries to fund offset projects

Answer 1

Bumpus and Liverman describe producing a carbon offset commodity as reducing emissions via projects and then selling those reductions as carbon credits, which compensate for emissions made elsewhere(option b).

Step-by-step explanation:

According to Bumpus and Liverman, the process for producing a carbon offset commodity includes reducing emissions through projects such as energy efficiency enhancements, and then selling the reduction in emissions in the form of carbon credits(option b).

This concept is articulated as an environmental commodity that can be traded or sold, representing the mitigation of a certain amount of carbon emissions. These offsets generally help entities or individuals to compensate for their own emissions by funding reductions elsewhere, often through renewable energy projects, reforestation, and similar methodologies that remove carbon from the atmosphere or prevent its release.