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State and Local Climate Policy under a National Emissions Floor

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Abstract

This paper describes the nature of inter-jurisdictional relations as they may exist under a federal cap-and-trade program and provides background on the current climate-related activities by state and local governments. State and local governments are uniquely positioned to implement many aspects of an overall climate strategy, and an important question is whether the price signal from a cap-and-trade program (or a tax) would be a sufficient incentive to do so. The paper examines alternative types of relationships between different levels of government when an agency problem exists, wherein information or incentives for action are not perfectly aligned.

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File URL: http://econ.ccps.virginia.edu/RePEc_docs/ceps_docs/Burtraw-Shobe-rff-dp-09-54.pdf
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Bibliographic Info

Paper provided by Center for Economic and Policy Studies in its series Working Papers with number 2008-05.

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Date of creation: 14 Mar 2008
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Handle: RePEc:vac:wpaper:wp08-05

Note: This mirrors a file published as a Resources for the Future discussion paper: RFF DP 09-54 Pub. data: December 2009 URL: http://www.rff.org/rff/documents/rff-dp-09-54.pdf
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Related research

Keywords: environmental federalism; emissions cap; cap and trade; incentives; subsidiarity;

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References

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  1. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
  2. Richard A. Posner, 1974. "Theories of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 335-358, Autumn.
  3. Meghan McGuinness & A. Denny Ellerman, 2008. "The Effects of Interactions between Federal and State Climate Policies," Working Papers 0804, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
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Cited by:
  1. Lawrence H. Goulder & Robert N. Stavins, 2011. "Challenges from State-Federal Interactions in US Climate Change Policy," American Economic Review, American Economic Association, vol. 101(3), pages 253-57, May.
  2. Goulder, Lawrence H. & Stavins, Robert N., 2010. "Interactions between State and Federal Climate Change Policies," Working paper 589, Regulation2point0.
  3. Dallas Burtraw & Art Fraas & Nathan Richardson, 2011. "Policy Monitor--Greenhouse Gas Regulation under the Clean Air Act: A Guide for Economists," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(2), pages 293-313, Summer.
  4. Burtraw, Dallas & Woerman, Matt, 2012. "US Status on Climate Change Mitigation," Discussion Papers dp-12-48, Resources For the Future.

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