Market makers
Climate change is a global problem — but its solution relies on national, regional, and local policy actions. Take the issue of greenhouse gas emissions markets, which put a price on, say, the amount of carbon a country can release into the atmosphere. There are about 45 substantial climate-focused markets around the world, including some operating within parts of a single country, such as California’s cap-and-trade program. But 195 countries developed the Paris Agreement in 2015 to reduce emissions. Can the trading schemes used in one place be readily adopted by others? Not really, according to Janelle Knox-Hayes, a professor in MIT’s Department of Urban Studies and Planning, because markets do not just naturally spring into existence wherever deals can be made; instead, they are painstakingly crafted by institutions. “Maybe markets are an important piece of the solution,” says Knox-Hayes. “But markets aren’t one-size-fits-all.” Knox-Hayes takes a deep look at the issue in a...