The Evolution of Carbon Markets

In a globalized world, characterized by competition and opportunities for emulation and learning, emissions trading systems in different jurisdictions might be expected to converge toward a common design. Instead, over the last twenty years, designs of these systems have diverged in numerous ways. The Evolution of Carbon Markets shows that diffusion can usefully be redefined to include learning and adaptation leading to policy divergence. Divergence - whether as a result of diffusion or autonomous action - is generated by the fact that interests and the configurations of potential winning coalitions vary across jurisdictions. The design of emissions trading systems is profoundly shaped by domestic politics. - Robert O. Keohane, Professor of Public and International Affairs, Emeritus, Princeton University This is an important and enlightening book that should be required reading for students, scholars, and policy-makers interested in carbon markets and climate change. Providing an unparalleled picture of the global status of carbon markets, it is the most comprehensive examination of the politics of emissions trading systems available. By bringing together both domestic political dynamics and international diffusion processes in one analytic framework, the volume provides insight into the widespread adoption of emissions trading and the ways that is has developed in different ways in diverse places. The insights developed in the volume have significant implications for the development of global carbon markets and lay bare the opportunities and challenges for emissions trading to play a major role in the global response to climate change. - Matthew Hoffmann, Professor of Political Science, University of Toronto, Canada Emissions trading has emerged as a key policy response to the urgent problem of global climate change. Yet little is still known about how and why a diversity of countries, regions and cities have embraced the policy instrument. By bringing together an impressive range of case studies - from California to China - this book underscores the context-specific nature of emissions trading, and provides timely insights into the prospects for a global carbon market. - Harro van Asselt, Professor of Climate Law and Policy, University of Eastern Finland