Mitchell, RonaldAhmed, Saima2024-08-072024-08-072024-08-07https://hdl.handle.net/1794/29811With ever-increasing global temperatures and climate change problems, states are faced with the challenge of formulating carbon reduction policies. The objective of this dissertation is to unfold the factors that lead states to adopt carbon taxes to reduce carbon emissions. Despite being considered an effective carbon reduction policy, carbon taxes have been adopted by only 28 states, and the remaining 166 did not adopt carbon taxes. The dissertation aims to understand the determinant factors behind the decision of the adoption of carbon taxes by 28 states and also to understand the timing of their implementation to explore specific circumstances. I have applied mixed methods in this research by conducting a cross-sectional quantitative analysis and two case studies, one on Australia’s adoption and repeal of carbon taxes and another on Mexico’s adoption of carbon taxes.The quantitative study of this dissertation found a strong influence of high levels of democracy in adopting carbon taxes, indicating the implication of the institutional features of liberal democracy, such as inclusivity, diverse representation, and accountability, and discussed how they allow room for policymakers to address climate change problems by having strong carbon emission reduction policies such as carbon taxes. It further demonstrated that proportional representative systems within highly liberal democracies also have strong correlations with the adoption of carbon taxes, indicating that the institutional features of proportional systems in democracies ensure more multiparty representation in the legislature that increases the likelihood of carbon taxes. The dissertation's case studies confirmed the quantitative study's findings about the positive impact of democratic institutions and proportional systems on the adoption of carbon taxes. Australia has been a highly liberal democracy for many decades, while Mexico democratized in 2000. Australia and Mexico have some proportional representation in their mixed systems, which ensures the representation of many political parties in the legislature. The political-institutional features helped both countries to have more discussions on the policy option of carbon taxes. In addition, both case studies helped to come to the conclusion that if Green or Left parties can form governments to attain decision-making power, the adoption of carbon taxes becomes highly likely.en-USAll Rights Reserved.Carbon taxesClimate changeEnvironmental politicsElectronic Thesis or Dissertation