Can the financialised atmosphere be effectively regulated and accounted for?

Patty McNicholas, Carolyn Windsor

Research output: Contribution to journalArticleResearchpeer-review

13 Citations (Scopus)

Abstract

Purpose: This paper aims to carry out a critical analysis of the proposed Australian emissions trading scheme (ETS) as a complex market solution to reduce greenhouse gases (GHGs). Specifically it seeks to examine the financial regulatory infrastructure that will more than likely oversee the Australian ETS, the same regulatory infrastructure which failed to prevent the global financial crisis. Design/methodology/approach: A critical examination of the financialisation of the atmosphere that follows the growth of the financialisation of capitalism when economic activity shifted from production and service sectors to finance. Financialisation of capitalism is supported by capitalist regulation influenced by neo-liberal doctrines of free markets and small government. Findings: Trillions of dollars of taxpayer funds bailed out large financial institutions that nearly collapsed after unregulated trading in complex financial products that were supposed to hedge future risk. Corporate emissions trading will involve similar financial products. The measurement and reporting of actual emissions to support the Australian ETS also creates challenges for the accountancy profession to provide a workable conceptual framework. Practical implications: If the currently flawed financial infrastructure required for the GHG emissions trading scheme, no amount of taxpayer funded bailouts will reverse the extreme climate change associated with an environmental catastrophe. Originality/value: The application of financialisation of monopoly capitalism and capitalist regulation theories to the critical analysis of commoditised GHGs traded as financial products in the proposed Australian ETS.

Original languageEnglish
Pages (from-to)1071-1096
Number of pages26
JournalAccounting, Auditing and Accountability Journal
Volume24
Issue number8
DOIs
Publication statusPublished - Oct 2011

Fingerprint

Emissions trading scheme
Atmosphere
Financialization
Capitalism
Financial products
Greenhouse gases
Financial institutions
Regulation theory
Bailouts
Finance
Service sector
Emissions trading
Design methodology
Economic activity
Global financial crisis
Free market
Accountancy
Climate change
Greenhouse gas emissions
Catastrophe

Cite this

McNicholas, Patty ; Windsor, Carolyn. / Can the financialised atmosphere be effectively regulated and accounted for?. In: Accounting, Auditing and Accountability Journal. 2011 ; Vol. 24, No. 8. pp. 1071-1096.
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Can the financialised atmosphere be effectively regulated and accounted for? / McNicholas, Patty; Windsor, Carolyn.

In: Accounting, Auditing and Accountability Journal, Vol. 24, No. 8, 10.2011, p. 1071-1096.

Research output: Contribution to journalArticleResearchpeer-review

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