The objective of this book is to analyze the institutional barriers
to implementing market-based climate policy, as well as to provide
some opportunities to overcome them. The approach is that of
institutional economics, with special emphasis on political
transaction costs and path dependence.
Instead of rejecting the neoclassical approach, this book uses it
where fruitful and shows when and why it is necessary to employ a
new or neo-institutionalist approach. The result is that equity is
considered next to efficiency, that the evolution and possible
lock-in of both formal and informal climate institutions are
studied, and that attention is paid to the politics and law of
economic instruments for climate policy, including some new
empirical analyses.
The research topics of this book include the set-up costs of a
permit trading system, the risk that credit trading becomes
locked-in, the potential legal problem of grandfathering in terms
of actional subsidies under WTO law or state aid under EC law, and
the changing attitudes of various European officials towards
restricting the use of the Kyoto Mechanisms.
General
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