, , , , How to Build Truly Sustainable Carbon Markets, The Solutions Journal, Volume 9, Issue 1, January 2018, (https://www.thesolutionsjournal.com/article/build-truly-sustainable-carbon-markets/) Abstract: “Where Did All the Markets Go?”1 was a question prominent amongst environmental economists in the 1990s when they realized the lack of market-based approaches in environmental policy practice with despair. The neoclassical economic theory of politics – or Public Choice –answered that question by claiming a “market tendency for the political process to resist market mechanisms for rationing scarce environmental resources.”2 And, while recently climate policy cap-and-trade programmes have spread across the globe and even at different governance levels, most carbon markets’ ambition is grossly insufficient. Despite important criticisms of why carbon trading has fallen short of expectations3, carbon markets offer a number of advantages over alternative policy instruments. In view of the tremendous challenges of the Paris Agreement and the necessity to decarbonize the global economy within this century, any policy option should be (re-)considered without prejudices. Yet, … Topics: Climate Change