Dr. Elena Aydos is a Brazilian-trained lawyer and a lecturer at Newcastle Law School, University of Newcastle, Australia. She has published in English and Portuguese in the areas of climate change law and policy and carbon pricing mechanisms. Elena is the author of Paying the Carbon Price (Edward Elgar, 2017), where she analyzes the phenomenon of carbon leakage and the resulting free allocation of permits to heavy polluters under Emissions Trading Schemes.

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“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 …

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