Edwin Woerdman: 'The carbon market, a government failure'

Dr Edwin Woerdman argues that the current problems in the market for emission rights are not caused by market failure, but by government failure. 'Government failure is the main cause of the problem', said Woerdman, associate professor at the University of Groningen, in an interview by EDGaR. His explanation is that 'the emission caps are too lax, too many regulatory exceptions have been created for industries and too many policy instruments are interacting at the same time'.