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A Synthetic Control Assessment of the Green Paradox: The Role of Climate Action Plans

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  • Arne Steinkraus

Abstract

This paper extends the green paradox literature by providing empirical insights into its existence. To check the green paradox theory, I analyse the production of coal in four major coal‐producing US states that announced a greenhouse gas action plan. To form a statement on whether there is a treatment effect caused by the green policy, I employ Synthetic Control Methods to calculate counterfactual coal production trajectories. I find that Montana experienced a high and statistically significant increase in coal production that is supported by a set of validity indicators. However, there is no evidence for a paradox in Kentucky, Pennsylvania and Virginia.

Suggested Citation

  • Arne Steinkraus, 2019. "A Synthetic Control Assessment of the Green Paradox: The Role of Climate Action Plans," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 545-570, November.
  • Handle: RePEc:bla:germec:v:20:y:2019:i:4:p:e545-e570
    DOI: 10.1111/geer.12176
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    Cited by:

    1. Xiaoke Zhao & Xuhui Ding & Liang Li, 2021. "Research on Environmental Regulation, Technological Innovation and Green Transformation of Manufacturing Industry in the Yangtze River Economic Belt," Sustainability, MDPI, vol. 13(18), pages 1-15, September.
    2. Pavel Tcvetkov, 2021. "Climate Policy Imbalance in the Energy Sector: Time to Focus on the Value of CO 2 Utilization," Energies, MDPI, vol. 14(2), pages 1-22, January.
    3. Sandra Achten & Christian Leßmann & Arne Steinkraus, 2018. "Die Umwelt-Kuznets-Kurve und internationaler Handel," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 25(01), pages 29-31, February.

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