Bauer College of Business debuts its carbon trading class this semester, which will be the first of its kind nationwide. Students will get the opportunity to learn about the coming carbon trading system and about the problems that come with the new system of exchange, which experts estimate to become a $2 trillion market within the next two years.’
‘The class will feature guest speakers from around the country, and its findings and projects will be communicated with persons in key Congressional committees and the Obama administration who are working on national cap and trade Legislation and international climate change negotiations,’ executive director of global environment management initiative professor Praveen Kumar, and teacher of the class, said in a UH press release.
Carbon trading is a market-based system of economics dealing with incentives that encourage businesses to keep the environment clean by reducing carbon monoxide pollution in the atmosphere.’ In addition to rewarding companies for going green, the carbon trade market will help create new jobs, said professor Victor B. Flatt, A.L. O’Quinn Chair in Environmental Law and director of the Environment Energy and Natural Resource center.
‘Carbon is now just emerging as a commodity and as of yet, we are only starting to see how it’s trading. And we also know that there is going to be a future United States law on this topic and we want to be in front of everyone else on this.’ It represents a way to learn an area of law that’s brand knew,’ Flatt said. ‘We want to train people to understand the dynamics of how’ a carbon trading system would work and that way they can practice in that area.’
The course syllabus covers the creation of property rights, commodity markets, market design and the incentives of market participants.
Professor Craig Pirrong, director of energy markets for GEMI, will be also be contributing to the class.’ Kumar and Pirrong will be teaming up to teach the financing side of carbon trading.’ Kumar and Pirrong teach students to analyze flaws in the construction of the commodity trading systems.’ Since the U.S. has not stated what their system of carbon trading will look like, Kumar and Pirrong will serve as advisers to how the system should work.’
Business and finance is but one side to this emerging system. Flatt teaches students the legal aspects of the carbon trade.’ Since carbon trading is new to the U.S., students interested in carbon trade law will have an advantage compared to other law students around the country, Flatt said.
Flatt studies the issues of offsetting, or balancing, in carbon trading systems.’ He also researches how the functioning European trade, worldwide trade and the emerging U.S. system in offsets or may be integrated into one carbon trading system.’
UH is trying to prepare students to succeed in today’s competitive job market, Kumar said.
‘The world is moving so fast and we are moving to different non-traditional areas,’ Kumar said.’ ‘The oil and gas industry are looking out because this move will affect them most.’
The class is limited to 40 graduate law and business students and Kumar and Flatt agreed that any students wanting to work with the environment and alternative energy will want to take this class.’
The introduction of the course is attracting attention. Local and national energy production and trading firms have inquired about the class, and Bauer College of Business has received and turned down over 50 requests asking that company employees be added to the class.
Carbon trading has an important future for the economy and that’s one of the reasons why industries across the country are desperate to learn the emerging system, Kumar said.
Although the course will be taught at the Bauer School of Business it says more about UH as a whole, Flatt said. Progressive interdisciplinary courses such as this one, as well as allowing business and law students to team up, shows that UH is committed to continue leading in energy, Flatt said.
‘We believe it’s going to be a wonderful experience for our students in the class as a whole. It’s going to help frame how the emerging energy system is going to work,’ Flatt said.
