Skip to main content

Fact-making in Permit Markets: Document Networks as Infrastructures of Emissions Trading

  • Chapter

Part of the Palgrave Studies in Science, Knowledge and Policy book series (SKP)

Abstract

Around the world, so-called environmental markets are on the rise as a new form of environmental policy. The idea is to govern environmental problems by setting up special markets for environmental bads and goods, such as air pollution, climate change, or biodiversity protection (e.g. Anderson/Libecap 2014; Carroll et al. 2007; Ellerman et al. 2010; Sandor et al. 2014; Tietenberg 2006). By far the largest environmental market today is the European Union’s (EU) emissions trading system (EU-ETS). As we learn from the official EU-ETS website, the system is the ‘European Union’s … key tool for reducing industrial greenhouse gas emissions cost-effectively’ and ‘works on the “cap and trade” principle’ (European Commission 2014), meaning that an overall limit (cap) on carbon emissions is divided up into shares (allowances) and allocated to polluters who can then trade these shares among each other and other market participants. The EU-ETS was formally established in 2003 and commenced operation in 2005. Since then, it has undergone a series of trading ‘phases’, and changes were made to its design. Many observers speak of a real-world experiment in this regard, highlighting opportunities for policy learning (e.g. Callon 2009; Kruger/Pizer 2004). Although the EU-ETS has been under attack by market-sceptical environmentalists for years (e.g. Amigos de la Terra et al. 2013; Lohmann 2006; Spash 2010) and is currently in a state of crisis due to an overallocation of allowances resulting in a low carbon price, it is unlikely that the EU will get rid of carbon trading any time soon.

Keywords

  • European Union
  • Emission Trading
  • Emission Trading Scheme
  • Carbon Market
  • Legal Document

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1057/9781137514509_8
  • Chapter length: 16 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   89.00
Price excludes VAT (USA)
  • ISBN: 978-1-137-51450-9
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book
USD   119.99
Price excludes VAT (USA)

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Allen, G. (2011) Intertextuality, 2nd edn (Abingdon and New York: Routledge).

    Google Scholar 

  • Amigos de la Terra et al. (2013) EU ETS Myth Busting: Why It Can’t Be Reformed and Shouldn’t Be Replicated. http://corporateeurope.org/sites/default/files/publications/eu_ets_myths.pdf

  • Anderson, T. and Libecap, G. D. (eds.) (2014) Environmental Markets: A Property Rights Approach (New York: Cambridge University Press).

    Google Scholar 

  • Beck, S. (2011) ‘Moving beyond the Linear Model of Expertise? IPCC and the Test of Adaptation’, Regional Environmental Change, 11(2), 297–306.

    CrossRef  Google Scholar 

  • Betsill, M. and Hoffmann, M. (2009) ‘Constructing “Cap and Trade”: The Evolution of Emissions Trading Systems for Greenhouse Gases’. Paper Prepared for the 2009 Open Meeting of the Human Dimensions of Global Environmental Change Research Community, 27–30 April, Bonn, Germany.

    Google Scholar 

  • Bulkeley, H. and Jordan, A. (2012) ‘Transnational Environmental Governance: New Findings and Emerging Research Agendas’, Environment and Planning C: Government and Policy, 30(4), 556–570.

    CrossRef  Google Scholar 

  • Bulkeley, H. et al. (2012) ‘Governing Climate Change Transnationally: Assessing the Evidence from a Database of Sixty Initiatives’, Environment and Planning C: Government and Policy, 30(4), 591–612.

    CrossRef  Google Scholar 

  • Callon, M. (1998) The Laws of the Markets (Oxford: Blackwell).

    Google Scholar 

  • Callon, M. (2007) ‘What Does It Mean to Say That Economics Is Performative?’, in MacKenzie, D., Muniesa, F., and Siu, L. (eds.) Do Economists Make Markets (Princeton: Princeton University Press), 311–357.

    Google Scholar 

  • Callon, M. (2009) ‘Civilizing Markets: Carbon Trading between in Vitro and in Vivo Experiments’, Accounting, Organizations and Society, 34(3–4), 535–548.

    CrossRef  Google Scholar 

  • Callon, M., Law, J., and Rip, A. (eds.) (1986) Mapping the Dynamics of Science and Technology: Sociology of Science in the Real World (London: Palgrave Macmillan).

    Google Scholar 

  • Carroll, N., Fox, J., and Bayon, R. (eds.) (2007) Conservation and Biodiversity Banking: A Guide to Setting Up and Running Biodiversity Credit Trading Systems (Earthscan).

    Google Scholar 

  • Cass, L. (2005) ‘Norm Entrapment and Preference Change: The Evolution of the European Union Position on International Emissions Trading’, Global Environmental Politics, 5(2), 38–60.

    CrossRef  Google Scholar 

  • Chandler, D. (2007) Semiotics: The Basics, 2nd edn (London/New York: Taylor & Francis).

    Google Scholar 

  • Christiansen, A. and Wettestad, J. (2003) ‘The EU as a Frontrunner on Greenhouse Gas Emissions Trading: How Did It Happen and Will the EU Succeed?’, Climate Policy, 3(1), 3–18.

    CrossRef  Google Scholar 

  • Crocker, T. D. (1966) ‘The Structuring of Atmospheric Pollution Control Systems’, in Wolozin, H. (ed.) The Economics of Air Pollution (New York: Norton), 61–86.

    Google Scholar 

  • Dales, J. H. (1968) Pollution, Property and Prices (Toronto: University of Toronto Press).

    Google Scholar 

  • Damro, C. and Mendez, P. L. (2003) ‘Emissions Trading at Kyoto: From EU Resistance to Union Innovation’, Environmental Politics, 12(2), 71–94.

    CrossRef  Google Scholar 

  • Djelic, M.-L. and Quack, S. (eds.) (2010) Transnational Communities: Shaping Global Economic Governance (Cambridge: Cambridge University Press).

    Google Scholar 

  • Djelic, M.-L. and Sahlin-Andersson, K. (eds.) (2006) Transnational Governance. Institutional Dynamics of Regulation (Cambridge: Cambridge University Press).

    Google Scholar 

  • Doreian, P. and Woodard, K. L. (1992) ‘Fixed List versus Snowball Selection of Social Networks’, Social Science Research, 21(2), 216–233.

    CrossRef  Google Scholar 

  • Ellerman, A. D., Convery, F. J., and de Perthuis, C. (eds.) (2010) Pricing Carbon: The European Union Emissions Trading Scheme (Cambridge: Cambridge University Press).

    Google Scholar 

  • Etzkowitz, H. and Leydesdorff, L. (2000) ‘The Dynamics of Innovation: From National Systems and “Mode 2” to a Triple Helix of University-Industry-Government Relations’, Research Policy, 29(2), 109–123.

    CrossRef  Google Scholar 

  • European Commission (2000) ‘Green Paper on Greenhouse Gas Emissions Trading within the European Union (com/2000/0087 Final)’.

    Google Scholar 

  • European Commission (2014) ‘Website of the EU Emissions Trading System (EU ETS)’, Date accessed 17 April 2013, available at: http://ec.europa.eu/clima/policies/ets/index_en.htm

  • Foucault, M. (2002) Archaeology of Knowledge (London/New York: Taylor & Francis).

    Google Scholar 

  • Freeman, R. and Maybin, J. (2011) ‘Documents, Practices and Policy’, Evidence & Policy: A Journal of Research, Debate and Practice, 7, 155–170.

    CrossRef  Google Scholar 

  • Gibbons, M. (2000) ‘Mode 2 Society and the Emergence of Context-Sensitive Science’, Science and Public Policy, 27(3), 159–163.

    CrossRef  Google Scholar 

  • Gilbert, G. N. (1977) ‘Referencing as Persuasion’, Social Studies of Science, 7(1), 113–122.

    CrossRef  Google Scholar 

  • Hoffmann, M. J. (2011) Climate Governance at the Crossroads: Experimenting with a Global Response after Kyoto (Oxford: Oxford University Press).

    CrossRef  Google Scholar 

  • Holm, P. and Nielsen, K. N. (2007) ‘Framing Fish, Making Markets: The Construction of Individual Transferable Qotas (ITQs)’, in Callon, M., Millo, Y., and Muniesa, F. (eds.) Market Devices (Malden, MA: Blackwell), 173–195.

    Google Scholar 

  • Jasanoff, S. (ed.) (2004) States of Knowledge: The Co-Production of Science and the Social Order (London: Routledge).

    Google Scholar 

  • Keller, R. (2005) ‘Analysing Discourse. An Approach from the Sociology of Knowledge’, Forum Qualitative Sozialforschung/Forum: Qualitative Social Research, 6(3), 223–242.

    Google Scholar 

  • Kristeva, J. (1982) Desire in Language: A Semiotic Approach to Literature and Art (Columbia: Columbia University Press).

    Google Scholar 

  • Kruger, J. A. and Pizer, W. A. (2004) ‘Greenhouse Gas Trading in Europe: The New Grand Policy Experiment’, Environment, 46(8), 8–23.

    CrossRef  Google Scholar 

  • Lane, R. (2012) ‘The Promiscuous History of Market Efficiency: The Development of Early Emissions Trading Systems’, Environmental Politics, 21(4), 583–603.

    CrossRef  Google Scholar 

  • Latour, B. (1987) Science in Action: How to Follow Scientists and Engineers through Society (Harvard: Harvard University Press).

    Google Scholar 

  • Lohmann, L. (ed.) (2006) ‘Carbon Trading: A Critical Conversation on Climate Change, Privatisation and Power’, available at: http://www.carbontradewatch.org/index.php?option=com_content&task=view&id=137&Itemid=169

  • MacKenzie, D. (2006) An Engine, Not a Camera: How Financial Models Shape Markets (Cambridge, MA: MIT Press).

    CrossRef  Google Scholar 

  • MacKenzie, D. (2009a) ‘Making Things the Same: Gases, Emission Rights and the Politics of Carbon Markets’, Accounting, Organizations and Society, 34(3–4), 440–455.

    CrossRef  Google Scholar 

  • MacKenzie, D. (2009b) Material Markets: How Economic Agents Are Constructed (Oxford: Oxford University Press).

    Google Scholar 

  • MacKenzie, D., Muniesa, F., and Siu, L. (eds.) (2007) Do Economists Make Markets? On the Performativity of Economics (Princeton: Princeton University Press).

    Google Scholar 

  • Mann, C. and Simons, A. (2014) ‘Local Emergence and International Developments of Conservation Trading Systems: Innovation Dynamics and Related Problems’, Environmental Conservation, FirstView, available at: http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=9450759&fileId=S0376892914000381

  • Marsden, P. (2005) ‘Recent Developments in Network Measurement’, in Carrington, P. J., Scott, J., and Wasserman, S. (eds.) Models and Methods in Social Network Analysis (Cambridge: Cambridge University Press), 8–30.

    CrossRef  Google Scholar 

  • McCauley, K. Barron, B., and Coleman, M. (2008) Crossing the Aisle to Cleaner Air: How the Bipartisan ‘Project 88’ Transformed Environmental Policy (Pittsburgh, PA: University of Pittsburgh Institute of Politics).

    Google Scholar 

  • Mcluhan, M. (2001) Understanding Media (New York: Routledge).

    Google Scholar 

  • Miller, P. and Rose, N. (1990) ‘Governing Economic Life’, Economy and Society, 19(1), 1–31.

    CrossRef  Google Scholar 

  • MacKenzie, D. (2008) Governing the Present: Administering Economic, Social and Personal Life (Cambridge: Polity Press).

    Google Scholar 

  • Montgomery, W. D. (1972) ‘Markets in Licenses and Efficient Pollution Control Programs’, Journal of Economic Theory, 5(3), 395–418.

    CrossRef  Google Scholar 

  • Peck, J. and Theodore, N. (2010) ‘Mobilizing Policy: Models, Methods, and Mutations’, Geoforum, 41(2), 169–174.

    CrossRef  Google Scholar 

  • Peck, J. and Theodore, N. (2012) ‘Follow the Policy: A Distended Case Approach’, Environment and Planning A, 44(1), 21–30.

    CrossRef  Google Scholar 

  • Pooley, E. (2010) The Climate War: True Believers, Power Brokers, and the Fight to Save the Earth (New York: Hyperion).

    Google Scholar 

  • Prior, L. (1997) ‘Following in Foucault’s Footsteps: Text and Context in Qualitative Research’, in Silverman, D. (ed.) Qualitative Research: Theory, Method and Practice (London: Sage), 63–79.

    Google Scholar 

  • Radaelli, C. (2004) ‘The Diffusion of Regulatory Impact Analysis — Best Practice or Lesson-Drawing?’, European Journal of Political Research, 43(5), 723–747.

    CrossRef  Google Scholar 

  • Sandor, R. L., Clark, N. J., Kanakasabai, M., and Marques, R. L. (2014) Environmental Markets: A New Asset Class (Research Foundation of CFA Institute).

    Google Scholar 

  • Simons, A., Lis, A., and Lippert, I. (2014) ‘The Political Duality of Scale-Making in Environmental Markets’, Environmental Politics, 23(4), 632–649.

    CrossRef  Google Scholar 

  • Simons, A. and Voß, J.-P. (2015) ‘Politics by Other Means. The Making of the Emissions Trading Instrument as a ‘pre-History: of Carbon Trading’, in Stephan, B. and Lane, R. (eds.) The Politics of Carbon Markets (New York: Routledge).

    Google Scholar 

  • Smith, D. (1990) Texts, Facts and Femininity: Exploring the Relations of Ruling (London: Routledge).

    CrossRef  Google Scholar 

  • Smith, D. (2001) ‘Texts and the Ontology of Organizations and Institutions’, Studies in Cultures, Organizations and Societies, 7(2), 159–198.

    CrossRef  Google Scholar 

  • Spash, C. L. (2010) ‘The Brave New World of Carbon Trading’, New Political Economy, 15(2), 169–195.

    CrossRef  Google Scholar 

  • Stavins, R. (1988) Project 88. Harnessing Market Forces to Protect Our Environment — Initiatives for the New President. Date accessed 15 February 2010, available at: http://www.hks.harvard.edu/fs/rstavins/Monographs_&_Reports/Project_88-1.pdf

  • Stavins, R. (1995) ‘Transaction Costs and Tradable Permits’, Journal of Environmental Economics and Management, 29(2), 133–148.

    CrossRef  Google Scholar 

  • Stephan, B. and Lane, R. (eds.) (2014) The Politics of Carbon Markets (New York: Routledge).

    Google Scholar 

  • Tietenberg, T. H. (1985) Emissions Trading: An Exercise in Reforming Pollution Policy (Washington, DC: Resources for the Future).

    Google Scholar 

  • Tietenberg, T. H. (2006) Emissions Trading. Principles and Practice, 2nd edn (Washington, DC: Resources for the Future).

    Google Scholar 

  • Ureta, S. (2013) ‘“Because in Chile [carbon] Markets Work!” Exploring an Experimental Implementation of an Emissions Trading Scheme to Deal with Industrial Air Pollution in Santiago’, Economy and Society, 43(2), 285–306.

    CrossRef  Google Scholar 

  • Voß, J.-P. (2007) ‘Innovation Processes in Governance: The Development of “Emissions Trading” as a New Policy Instrument’, Science and Public Policy, 34, 329–343.

    CrossRef  Google Scholar 

  • Voß, J.-P. and Simons, A. (2014) ‘Instrument Constituencies and the Supply Side of Policy Innovation: The Social Life of Emissions Trading’, Environmental Politics, 23(5), 735–754.

    CrossRef  Google Scholar 

  • Weingart, P. (1999) ‘Scientific Expertise and Political Accountability: Paradoxes of Science in Politics’, Science and Public Policy, 26(3), 151–161.

    CrossRef  Google Scholar 

  • Weyant, J. P. (1999) ‘The Costs of the Kyoto Protocol: A Multi-Model Evaluation. Special Issue’, The Energy Journal, i, 398.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2016 Arno Simons

About this chapter

Cite this chapter

Simons, A. (2016). Fact-making in Permit Markets: Document Networks as Infrastructures of Emissions Trading. In: Voß, JP., Freeman, R. (eds) Knowing Governance. Palgrave Studies in Science, Knowledge and Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9781137514509_8

Download citation

  • DOI: https://doi.org/10.1057/9781137514509_8

  • Publisher Name: Palgrave Macmillan, London

  • Print ISBN: 978-1-349-56476-7

  • Online ISBN: 978-1-137-51450-9

  • eBook Packages: Social SciencesSocial Sciences (R0)