Making Climate Policy Work

Format: Hardback
Length: 256 pages
Publication date: 23 October 2020
Publisher: Polity Press

For decades, governments worldwide have grappled with the challenge of translating talk into action on climate change. While there is hope that increasing public awareness will drive greater policy ambition, the most widely advocated approach to address the climate crisis, namely the utilization of market-based programs, has proven ineffective and is not yet ready for widespread implementation. In their insightful book, Danny Cullenward and David Victor delve into the politics behind the creation and maintenance of market-based policies, highlighting their inherent shortcomings in nearly every context where they have been applied. While reforms may offer marginal improvements, the underlying structural issues plaguing markets cannot be resolved solely by increasing demand for climate solutions. Recognizing this reality necessitates a shift towards relying more heavily on smart regulation and industrial policy, which are government-led strategies designed to catalyze the transformative potential that markets promise but often fail to deliver.

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Governments have been struggling for decades to translate talk into action on climate change. While there is hope that growing public concern will lead to greater policy ambition, the most widely promoted strategy to address the climate crisis, namely the utilization of market-based programs, has proven ineffective and is not yet ready for widespread implementation. In their insightful book, Danny Cullenward and David Victor delve into the politics behind the creation and maintenance of market-based policies, highlighting their inherent shortcomings in nearly every context where they have been applied. While reforms may offer marginal improvements, the underlying structural issues plaguing markets cannot be resolved solely by increasing demand for climate solutions. Recognizing this reality necessitates a shift towards relying more heavily on smart regulation and industrial policy, which are government-led strategies designed to catalyze the transformative potential that markets promise but often fail to deliver.

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The politics of creating and maintaining market-based policies render them ineffective nearly everywhere they have been applied. Market-based programs often fail to deliver the desired outcomes due to various factors, including the lack of a clear policy framework, the absence of effective regulation, and the influence of powerful vested interests. For example, in the case of carbon pricing, market-based programs have struggled to achieve their goals of reducing greenhouse gas emissions and promoting sustainable development due to the resistance of industries and the lack of a comprehensive carbon pricing mechanism. Similarly, in the case of renewable energy policies, market-based programs have faced challenges due to the high costs of technology and the lack of government support and incentives.

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Reforms can help around the margins, but markets problems are structural and wont disappear with increasing demand for climate solutions. To address the climate crisis effectively, governments need to adopt a more comprehensive and integrated approach that combines market-based programs with smart regulation and industrial policy. Smart regulation can provide the necessary framework and oversight to ensure that market-based programs are implemented effectively and that they deliver the desired outcomes. Industrial policy can also play a crucial role in promoting the development and deployment of climate-friendly technologies and industries. By combining these strategies, governments can create a more sustainable and resilient economy that is capable of addressing the challenges of climate change.

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In conclusion, the politics of creating and maintaining market-based policies have hindered the progress of climate action. While reforms can offer marginal improvements, the underlying structural issues plaguing markets cannot be resolved solely by increasing demand for climate solutions. To address the climate crisis effectively, governments need to rely more heavily on smart regulation and industrial policy, which are government-led strategies designed to catalyze the transformative potential that markets promise but often fail to deliver. By adopting a more comprehensive and integrated approach, governments can create a more sustainable and resilient economy that is capable of addressing the challenges of climate change.

Weight: 444g
Dimension: 144 x 222 x 26 (mm)
ISBN-13: 9781509541799