The Evolution of Carbon Market: A Systematic Review and Bibliometric Study

Abstract

The carbon market has emerged as a pivotal instrument in global climate policy, yet comprehensive analyses of its scholarly evolution remain limited. This study conducts a systematic review and bibliometric analysis of 491 Scopus-indexed publications (2000–2024) to map the intellectual structure and thematic trajectories of carbon market research. Using VOSviewer and Biblioshiny, we employ performance analysis and science mapping techniques to identify key trends, influential contributors, and research clusters. Results reveal exponential growth in publications post–Paris Agreement, with China, the USA, and Australia dominating output. Thematic evolution demonstrates a shift from early focus on Kyoto Protocol mechanisms to contemporary emphasis on carbon neutrality, pricing efficiency, and low-carbon technologies. Co-citation analysis identifies five research clusters: (1) carbon pricing policy design, (2) market efficiency and financialization, (3) international climate agreements, (4) corporate carbon strategies, and (5) technological innovation. Notably, critical perspectives on equity and governance remain marginalized, representing just 9% of high-impact studies. The geographic concentration of research (76% from OECD nations) highlights disparities in scholarly attention relative to Global South market implementations. Our findings yield three key policy insights: first, market designs must integrate dynamic cap-setting and price stabilization tools; second, governance frameworks require explicit equity safeguards; third, global harmonization of accounting standards is urgent. By synthesizing over 20 years of research, this paper highlights the importance of carbon markets in achieving global climate goals and identifies areas that require further exploration, including market design, equity, and environmental integrity.

Received: 9 May 2025 | Revised: 25 June 2025 | Accepted: 20 October 2025

Conflicts of Interest

The authors declare that they have no conflicts of interest to this work.

Data Availability Statement

Data are available on request from the corresponding author upon reasonable request.

Author Contribution Statement

Ghanashyam Khanal: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, Resources, Data curation, Writing – original draft, Writing – review & editing, Visualization, Project administration. Niranjan Devkota: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, Resources, Data curation, Writing – original draft, Writing – review & editing, Visualization, Supervision, Project administration. Ramkrishna Chapagain: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, Resources, Data curation, Writing – original draft, Writing – review & editing, Visualization, Project administration. Chandra Kanta Khanal: Data curation, Writing – review & editing, Visualization.