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California’s Cap-and-Trade System: Diffusion and Lessons

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  • Guri Bang
  • David G. Victor
  • Steinar Andresen

Abstract

This article investigates the roles of policy diffusion and policy learning in shaping the design of California’s cap-and-trade system. On the surface, it is very similar to other cap-and-trade programs, but in practice many detailed differences reflect active efforts by California policy-makers to avoid flaws that they saw in other systems, such as the EU ETS and the US East Coast’s Regional Greenhouse Gas Initiative. We assess how California’s cap-and-trade system emerged, the significance of policy diffusion, and the lessons for other trading systems by applying two broad sets of theoretical frames—the role of policy diffusion and the role of organized local political concerns. We find that despite the signature status of the trading system, California mostly relies on much less transparent and more costly direct regulation. We also find that California’s cap-and-trade system has developed mostly in its own, special political context, which hampers the feasibility of cross-border trading.

Suggested Citation

  • Guri Bang & David G. Victor & Steinar Andresen, 2017. "California’s Cap-and-Trade System: Diffusion and Lessons," Global Environmental Politics, MIT Press, vol. 17(3), pages 12-30, August.
  • Handle: RePEc:tpr:glenvp:v:17:y:2017:i:3:p:12-30
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    Cited by:

    1. Mastrandrea, Michael D. & Inman, Mason & Cullenward, Danny, 2020. "Assessing California's progress toward its 2020 greenhouse gas emissions limit," Energy Policy, Elsevier, vol. 138(C).
    2. Ying Ji & Jianhui Du & Xiaoqing Wu & Zhong Wu & Deqiang Qu & Dan Yang, 2021. "Robust optimization approach to two-echelon agricultural cold chain logistics considering carbon emission and stochastic demand," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13731-13754, September.
    3. Johannes Enzmann & Marc Ringel, 2020. "Reducing Road Transport Emissions in Europe: Investigating A Demand Side Driven Approach †," Sustainability, MDPI, vol. 12(18), pages 1-31, September.
    4. Anjos, Miguel F. & Feijoo, Felipe & Sankaranarayanan, Sriram, 2022. "A multinational carbon-credit market integrating distinct national carbon allowance strategies," Applied Energy, Elsevier, vol. 319(C).
    5. Enzmann, Johannes & Ringel, Marc, 2023. "Reducing Road Transport Emissions in Europe: Investigating A Demand Side Driven Approach," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 141745, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).

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