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Abstract
It is increasingly clear that carbon credits generated by clean development mechanism projects do not all deliver the same sustainable development (SD) benefits, as intended by the Kyoto Protocol. Independent certification has now been developed to meet the needs of buyers searching for carbon credits with high levels of SD benefit. This article uses the contingent valuation method to investigate buyers’ willingness to pay a price premium for Gold Standard (GS) carbon credit in recognition of SD benefits. This study finds that 56.4% of the buyers are willing to pay a price premium for GS carbon credits. Charity groups and governments are more likely to place a price premium on certified credit than private sector buyers. On average, buyers are willing to pay a price premium of €1.12 per tonne of carbon dioxide equivalent for GS carbon credit in recognition of SD benefits.