Social and Behavioral Sciences Commons^™

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 …