ABSTRACT
This chapter begins with an overview of the Clean Development Mechanism (CDM), which provides a useful case for measuring environmental outcomes within the Emerging Market Economies (EMEs). It also explores how modern capitalism is conceptualized and operationalized in the literature and for this research. The chapter explores how various sets of economic institutions perform in market-based policies used to incentivize new market formation. Capital market-based systems, which are usually associated with more liberal forms of capitalism, rely more on a direct transfer from savers to borrowers via securities markets. The VoC theory assumes a rationalist approach to economic institutions, it is important to challenge the latent functionalism of the theory if further inroads are to be made in the field of comparative capitalism. The chapter concludes with a brief discussion on the data sources and types used in this research.
