Politics, industry and the regulation of industrial greenhouse-gas emissions in the UK and Germany

Abstract:

This paper assesses the impact of 'new' environmental policy instruments (NEPIs), such as eco-taxes, tradable permits and environmental agreements, on the politics of regulating industrial greenhouse-gas emissions. Intense academic debate surrounds the extent to which environmental policy is driven by the public interest, public choices between actor and stakeholder interests, or embedded institutional traditions. However, the effects on environmental politics of the recent shift from direct regulation to NEPIs remain seriously under-researched. Surveys and interviews with industry and policy-makers on the implementation of United Kingdom and German climate policy indicate that, although economic pressures do influence the design of policy instruments, public choice is far from dominant; nor are industry reactions to particular NEPIs uniform between countries. This suggests that national institutional traditions are far more influential in informing policy choices and industry reactions to policy innovations than is often acknowledged.