Takeshi Kawakatsu, PhD, is an economist and associate professor at the Department of Public Policy, Kyoto Prefectural University, Japan. His expertise is in environmental economics and public finance with a special focus on urban sustainability, sustainable transportation and local environmental taxation in North America, Europe, and Japan. He has published several articles and books in this field and has been a member of environmental and public finance related committees of Japanese local governments.

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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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