The political economy of regulation: an analysis of the Mexican emission trading system
Daniela Stevens, Profesora Investigadora Titular de la División de Estudios Internacionales del CIDE, escribió The political economy of regulation: an analysis of the Mexican emission trading system, capítulo del libro Towards an Emissions Trading System in Mexico: Rationale, Design and Connections with the Global Climate Agenda.
The chapter argues that the design of carbon pricing policies takes place as a sequential, negotiated process whereby specific constituencies have privileged access to shape policy design because they have high stakes in regulations. These groups, identified ex ante based on the political economy of regulation and a stakeholder approach, exhibit two characteristics: first, they are high-interest actors, as a change in the status quo would impose concentrated costs on them; second, they are high-power actors, since their resources and participation in the national economy make them a critical sector. Using theory-guided process tracing and the policy stages heuristics framework, the empirical analysis explores the policymaking process of the Mexican pilot emission trading system and discusses key features of its design.