Externality Valuation and Climate Finance
Verdurous has worked extensively on mitigation and adaptation
efforts and has developed a specialized focus in externality
valuation and internalization of such environmental costs.
Verdurous personnel have developed a volume on externality
valuation brought out by Nova Publishers of New York, USA.
- Verdurous has studied stock-market
responses to CDM project acceptance / rejection over the various
process steps and for projects that had applied with
assets-in-place (retro-active applications) and forward looking
applications. Recommendations were made to assess the genuine
valuation of the externality being internalized.
- To aid with mitigation, Verdurous has
developed an economic valuation model and a payment mechanism for
ecosystem services to encourage the growth and preservation of
biologically diverse forest stands.
- Verdurous has documented investor
responses to the release of consecutive IPCC reports. It was
observed that even as the projections made by the more recent IPCC
reports were increasingly dire, the information release itself
seemed to trigger an unemotional and perhaps short-lived response
- Verdurous has reviewed and improved
upon the “broker-assisted” model to alter behavioral patterns and
to induce pro-environmental behavior through a “social-network”
approach. The “man-in-the-middle” case studies analyzed include
the community managed forest conservation program in Bhutan and
the installation of low-cost water heaters in Brazil.
- Verdurous has developed a synthetic
currency to enhance the efficiency of externality valuation and
trade, specifically to replace the Euro as a medium of exchange.
The project also demonstrated enhanced market efficiency from
employing the new basket currency, the “CERO”.
- Given the specific and long-tenures
intrinsic to climate-related investments, Verdurous has developed
a model and a short-run discount rate mechanism to help conserve
on natural capital and induce climate-conscious investments in the
present. The discount rate model is applied to sustainable coffee
production in Rwanda.