Climate Change, the Rule of Law, and Market-Based Schemes to Encourage Renewable Energy and Energy Efficiency

Abstract

This article explores the nature and meaning of the rule of law as it applies to the development of market-based schemes aimed at providing solutions to the challenge of climate change. Part II explores what the western legal tradition means by the rule of law, and the threat posed by climate change to that foundational principle. But the rule of law also contains the potential for addressing that threat and, as such, Part III explores examples found in Australian law of market-based renewable energy and energy efficiency initiatives that might address this challenge. The Australian approach is representative of the schemes which other nations can and do use to achieve GHG reductions. Part IV, then, suggests some lessons for other nations which seek to address the climate threat through the implementation of market-based schemes to transition to a green economy. Part V concludes.

Keywords: Climate change, the rule of law, renewable energy, energy efficiency

JEL Classification: K32