Comparative Politics of Carbon Pricing

Abstract

In response to climate change, jurisdictions throughout the world have been developing new policy instruments to “price carbon” and thus reduce greenhouse gas emissions. Both carbon taxes and cap and trade offer the potential to achieve greenhouse gas reduction targets at a lower cost to society than conventional regulation, but they do so in part by reallocating costs, thus creating new winners and losers. Policymakers implementing these policy instruments thus confront new and sometimes surprising politics. Cross-national comparison of the politics of carbon pricing may yield insights into strategies to control greenhouse gases that are both effective and politically feasible. Moreover, comparative research in this new arena of uncertain, hidden, and delayed costs and benefits may also inform theory concerning the interactions of interest groups within the context of political institutions.

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