Comparative analysis and conclusions

In Jørgen Wettestad and Lars H. Gulbrandsen (eds), The Evolution of Carbon Markets: Design and Diffusion. London, Routledge, 2018, pp. 229-252.

This chapter provides a comprehensive cross-case analysis. We begin with a discussion of central factors that have shaped the turn to emissions trading in the systems studied here. Then we turn to the key design question, providing first an overview of central design similarities and differences among the systems and the role of policy diffusion in shaping those design outcomes. Next, we examine our five expectations about the relationship between policy diffusion mechanisms, domestic politics, and design outcomes in light of the empirical evidences. We wrap up the chapter with some concluding reflections, including implications for further research and future prospects for carbon markets and their role in the follow-up of the Paris Agreement.