Theory and method

In Jørgen Wettestad and Lars H. Gulbrandsen (eds), The Evolution of Carbon Markets: Design and Diffusion. London, Routledge, 2018, pp. 13-29.

This chapter begins with a discussion of the dependent variable ETS design, with eight specific attributes. This is followed by examinations of the focused causal mechanisms related to policy diffusion (learning, emulation, coercion and competition), the role of domestic institutions and politics as mediating variables, and five specific expectations about policy diffusion and design outcomes. Next, we briefly discuss alternative explanations for the spread of emissions trading, referred to as ‘parallel play’, and interplay between emissions trading and other climate policy instruments. The chapter ends with a brief discussion of our methodological approach and data.