Digital Commons Network^™

Neoliberal Instrument Choice, David M. Driesen

College of Law - Faculty Scholarship

This book chapter reviews the influence on economic thought about instrument choice and its influence upon United States climate change policy. It shows that the theory of instrument choice made a positive contribution to the United States policy arsenal by emphasizing the cost effectiveness advantages of emissions trading. But because of an ideological climate uncritically supportive of free markets prevailed during the period of U.S. failure to address climate change, the United States favored overly broad trading programs, both in terms of geography and scope. This posture had a large influence on the Kyoto Protocol, leading the world to adopt …

An Environmental Competition Statute, David M. Driesen

College of Law - Faculty Scholarship

This chapter from a forthcoming Cambridge Press book, Beyond Environmental Law, proposes emulating free market dynamics with a new regulatory instrument, the Environmental Competition Statute. This statute would authorize any polluter making a pollution reduction to require a dirtier competitor to reimburse it for the full cost of making this improvement along with a preset profit margin. This creates an economic dynamic similar to that prevailing in very competitive markets. In such markets, those who innovate in effect take money from those who do not, by taking over a portion of their market share. This statute similarly allows environmental innovators …

Sustainable Development And Market Liberalism's Shotgun Wedding: Emissions Trading Under The Kyoto Protocol, David M. Driesen

College of Law - Faculty Scholarship

This article analyzes the international emissions trading regime at the heart of the world's effort to address global warming as a means of exploring broader international governance issues. The trading regime seeks to marry two models of global governance, market liberalism, which embraces markets as the model of global governance, and sustainable development, which seeks to change development patterns to protect future generations.

This article explores a previously unacknowledged tension between market liberalism's goal of maximizing short term cost effectiveness and sustainable development's goal of catalyzing technological change for the benefit of future generations. This article presents new data and …

Sustainable Development And Market Liberalism's Shotgun Wedding: Emissions Trading Under The Kyoto Protocol, David M. Driesen

College of Law - Faculty Scholarship

This article analyzes the international emissions trading regime at the heart of the world's effort to address global warming as a means of exploring broader international governance issues. The trading regime seeks to marry two models of global governance, market liberalism, which embraces markets as the model of global governance, and sustainable development, which seeks to change development patterns to protect future generations.

This article explores a previously unacknowledged tension between market liberalism's goal of maximizing short term cost effectiveness and sustainable development's goal of catalyzing technological change for the benefit of future generations. This article presents new data and …

An Economic Dynamic Approach To The Infrastructure Commons, David M. Driesen

College of Law - Faculty Scholarship

This brief essay comments upon and extends Brett Frischman's idea of the infrastructure commons, i.e. that certain commons resources function as infrastructure. After suggesting some refinements of the infrastructure commons theory, this essay shows how an economic dynamic approach to law (see David M. Driesen, The Economic Dynamics of Environmental Law (MIT Press 2003) can help strengthen the case for proper management of the infrastructure commons, helping bolster the case for preserving the commons and identifying some of its limitations. The essay, like Professor Frischman's original article, applies infrastructure commons theory to both environmental and intellectual property resources.

Design, Trading, And Innovation, David M. Driesen

College of Law - Faculty Scholarship

This book chapter questions the conventional theory purporting to establish that environmental benefit trading encourages innovation better than comparable traditional regulation. It argues that the induced innovation hypothesis, that high costs encourage innovation, suggests that trading would lessen incentives for innovation by lowering the cost of complying with conventional approaches. The conventional theory relies upon the incentive emissions trading creates for polluters to make additional reductions in order to sell credits. But emissions trading also creates incentives for half of the pollution sources (the credit buyers) to make less reductions than they would under a traditional regulation. By focusing analysis …

Design, Trading, And Innovation, David M. Driesen

College of Law - Faculty Scholarship

This article questions the conventional theory purporting to establish that environmental benefit trading encourages innovation better than comparable traditional regulation. It argues that the induced innovation hypothesis, that high costs encourage innovation, suggests that trading would lessen incentives for innovation by lowering the cost of complying with conventional approaches. The conventional theory relies upon the incentive emissions trading creates for polluters to make additional reductions in order to sell credits. But emissions trading also creates incentives for half of the pollution sources (the credit buyers) to make less reductions than they would under a traditional regulation. By focusing analysis only …