A Review of Benefits, Constraints, and Research Opportunities in the Markets for Voluntary Offset Investments

Abstract

Voluntary offset investments provide the opportunity to compensate for the ecological consequences of consumption. Despite this opportunity, many entities do not purchase offset investments. We provide an overview of alternative carbon and biodiversity offset investments. We characterize the marketplace conditions, benefits, and constraints operating in the markets for voluntary carbon and biodiversity offset investments. We subsequently outline research implications inherent to these markets.