Title: Carbon capture: the rise of the influence of Australia and Canada on climate negotiations

Authors: Alison Kemper; Roger Martin

Addresses: Ted Rogers School of Management, Ryerson University, 350 Victoria Street, Toronto, ON, M5B 2K3, Canada ' Rotman School of Management, University of Toronto, 105 St. George Street, Toronto, Ontario, M5S 3E6, Canada

Abstract: In this paper, we explore the emergence of an alliance between Australia and Canada, an alliance that helped to derail climate change negotiations at two international meetings in 2013. We hypothesise that carbon-based industries create policy ties to national governments in order to forestall regulation, using negotiators to create a global policy corral (Barley, 2010). We use three events in 2009 that increased risks to carbon-based industries as a natural experiment: the change in the US presidency, the onset of the Great Recession and the sudden rise in Chinese investment in photovoltaics. Using panel data, we create a model for the impact of social, political and environmental factors and for the changing influence of industries. We find that the correlation between national carbon assets and climate policy increases in these two countries after 2009, suggesting that corporate interests were able to incorporate these governments into new international policy corrals.

Keywords: climate change negotiations; climate policy performance; business-government strategy; B2G; carbon capture; Australia; Canada; national governments; regulation; social factors; political factors; environmental factors; corporate interests; international policy corrals.

DOI: 10.1504/IJISD.2017.086870

International Journal of Innovation and Sustainable Development, 2017 Vol.11 No.4, pp.336 - 354

Received: 01 Jul 2015
Accepted: 26 Apr 2016
Published online: 02 Oct 2017 *

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