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Energy, Governance, And Market Mechanisms, Alice Kaswan

University of Miami Law Review

As climate modelers’ projections materialize through intense storms, catastrophic flooding, unprecedented heat waves, and more, the need for substantial decarbonization within the next few decades has become increasingly clear. Transitioning to clean energy will bring benefits and drawbacks and will create winners and losers. Who will decide how we transition? Our choice of policy tools will have significant implications for who controls the transition and how it unfolds.

Many economists promote the role of market-based mechanisms like carbon taxes or cap-and-trade, mechanisms that rely largely on private actors to make crucial decisions. Under this view, government measures would fill in …