The Emission Trading System: Transfer of the EU ETS to Canada.

This study aimed to investigate which of the theories, logic of appropriateness or logic of consequence, provide greater explanatory leverage for a policy transfer based on the case of the ETS transfer from the EU to Canada. The congruence analysis was utilized in order to reveal which of the theories provide a better explanation. The logic of appropriateness was operationalized through the party political ideology while the logic of consequence was analyzed through the interest group preferences. The investigation revealed that neither of the theories provides a comprehensive explanation for the policy transfer. First, although the analysis of political parties in Canada illustrates that the transfer did not occur, it was revealed that the ideologies in receiving countries play a role in policy adoption. More precisely, the left-wing ideologies are more receptive to new environmental policies. The examination of the interest group’s preferences also confirmed that the policy transfer did not occur. At the same time, the results showed that the more likely the new environmental policies appeal to the interest groups, the more likely that the policy will be adopted.