Navigating Success in Carbon Offset Projects: A Deep Dive into the Determinants Using Topic Modeling

Abstract

Carbon offset projects play a crucial role in tackling the global challenge of climate change. However, there is limited understanding of the factors contributing to the success of a carbon offset project. In this study, we utilize the latent Dirichlet allocation method to extract topics from the descriptions of carbon offset projects sourced from the Gold Standard Foundation. Our findings reveal that projects encompassing both safety and efficient energy solutions for households command higher prices. These results imply that an effective carbon offset project should mitigate individual household emissions while enhancing safety. Our research carries significant implications for stakeholders involved in carbon offset projects and can serve as a foundation for policy formulation and standard regulations.