Carbon markets are developing and expanding around the world, but how and to what extent is their design shaped by learning and interaction between them? How do these markets function and what is the role of design?

Carrying out a ground-breaking analysis of their design and diffusion, this book covers all the major carbon market systems and processes around the world: the EU, RGGI, California, Tokyo, New Zealand, Australia, China, South Korea and Kazakhstan. It offers a systematic, in-depth discussion and comparison of the key design features in these systems with expert contributors exploring how, and to what extent, these features have been shaped by central policy diffusion mechanisms and domestic politics.

By focussing on the specific design features of the instruments used, this volume makes important contributions to diffusion theory, highlighting how ETS diffusion processes more often have resulted in design divergence than convergence, and discussing the implications of this finding for the vision of linked systems in the post-Paris era. It will be of significant interest to a broad audience interested in the emergence, evolution, functioning and interaction of carbon markets.

chapter 1|12 pages


ByJørgen Wettestad, Lars H. Gulbrandsen

chapter 2|17 pages

Theory and method

ByLars H. Gulbrandsen, Arild Underdal, David G. Victor, Jørgen Wettestad

chapter 3|23 pages

EU emissions trading

Frontrunner – and ‘black sheep’?
ByJørgen Wettestad, Torbjørg Jevnaker

chapter 4|14 pages

The Regional Greenhouse Gas Initiative

US pioneer seeking to avoid EU mistakes?
BySolveig Lygre, Jørgen Wettestad

chapter 5|21 pages

California’s cap-and-trade programme

The role of diffusion
ByGuri Bang, David G. Victor, Steinar Andresen

chapter 6|17 pages

Tokyo’s emissions trading system

Japan’s first mandatory cap-and-trade scheme
ByMasahiko Iguchi

chapter 7|19 pages

Adopting and designing New Zealand’s emissions trading scheme

ByTor Håkon Jackson Inderberg, Ian Bailey, Nichola Harmer

chapter 8|21 pages


Domestic politics, diffusion and emissions trading design as a technical and political project
ByIan Bailey, Tor Håkon Jackson Inderberg

chapter 9|21 pages

South Korea

East Asian pioneer learning from the EU
ByKatja Biedenkopf, Jørgen Wettestad

chapter 10|14 pages

Emissions trading in Kazakhstan

Complicated application of the ‘EU model’
ByFrançois Sammut, Lars H. Gulbrandsen, Jørgen Wettestad

chapter 11|28 pages

China’s carbon market

In it to learn it
ByIselin Stensdal, Gørild Heggelund, Duan Maosheng

chapter 12|21 pages

ETS design and potential effects in China

Comparison with the EU
ByChristoph Böhringer, Knut Einar Rosendahl, Tang Weiqi

chapter 13|22 pages

Comparative analysis and conclusions

ByJørgen Wettestad, Lars H. Gulbrandsen, David G. Victor, Arild Underdal