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What Niklas Luhmann might have said of carbon trading

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Author Info
David Campbell (University of Durham)
Matthias Klaes (Keele University)

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Abstract

Ecological questions have proven particularly fruitful to illustrate Luhmann's theory of society as an integrative perspective cutting across the scientific, economic, legal, and political domains. In this paper, we will discuss the development of carbon trading as a case study of how reflexive system rationality of the kind postulated by Luhmann becomes the defining characteristic of the spectacular failure of such trading as has taken place to date to even approximate any of it own stated goals. Paradoxically, regulatory attempts to provide for a market-based response to anthropogenic global warming have resulted in the emergence of carbon prices that are essentially planned at a level of ambition reminiscent of the twentieth century's most extensive exercises in centralised command and control, due to structural couplings between the scientific, economic, political and legal systems and an ecology of organisations and institutions spread across them. As government-sponsored carbon trading is perhaps the most characteristic initiative of modern government, its discussion in Luhmann's terms is significant for any evaluation of the relevance of his work.

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File URL: http://www.sceme.org.uk/wps/SCEME024_CampbellKlaes_2008.pdf
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Publisher Info
Paper provided by SCEME in its series SCEME Working Papers: Advances in Economic Methodology with number 024/2008.

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Length: 14 pages
Date of creation: Jun 2008
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Handle: RePEc:sti:wpaper:024/2008

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Related research
Keywords: globalisation; Luhmann; carbon trading; regulatory failure; Coase;

Find related papers by JEL classification:
B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary
K0 - Law and Economics - - General
Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
Z1 - Other Special Topics - - Cultural Economics

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This page was last updated on 2009-11-25.


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