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Challenges from State-Federal Interactions in US Climate Change Policy

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Listed:
  • Lawrence H. Goulder
  • Robert N. Stavins

Abstract

With a focus on two sorts of regulation--renewable electricity and clean energy standards, and automobile fuel-economy standards--we analyze problematic interactions that arise when state policies are nested within the domain of Federal policy. Here state efforts may fail to reduce greenhouse gas emissions nationally, and may compromise cost-effectiveness. Difficulties from overlapping regulations are avoidable through price- (as opposed to quantity-) based Federal policy. We identify some potentially positive interactions between state and Federal policies, and identify rationales for state action when Federal and state policies do not overlap.

Suggested Citation

  • 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 253-257, May.
  • Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:253-57
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    References listed on IDEAS

    as
    1. Dallas Burtraw & William Shobe, 2008. "State and Local Climate Policy under a National Emissions Floor," Working Papers 2008-05, Center for Economic and Policy Studies.
    2. Fischer, Carolyn & Preonas, Louis, 2010. "Combining Policies for Renewable Energy: Is the Whole Less Than the Sum of Its Parts?," International Review of Environmental and Resource Economics, now publishers, vol. 4(1), pages 51-92, June.
    3. Stephen P. Holland & Jonathan E. Hughes & Christopher R. Knittel, 2009. "Greenhouse Gas Reductions under Low Carbon Fuel Standards?," American Economic Journal: Economic Policy, American Economic Association, vol. 1(1), pages 106-146, February.
    4. Goulder, Lawrence H. & Jacobsen, Mark R. & van Benthem, Arthur A., 2012. "Unintended consequences from nested state and federal regulations: The case of the Pavley greenhouse-gas-per-mile limits," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 187-207.
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    Citations

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    Cited by:

    1. Tol, Richard S.J., 2017. "The structure of the climate debate," Energy Policy, Elsevier, vol. 104(C), pages 431-438.
    2. repec:wsi:ccexxx:v:03:y:2012:i:04:n:s2010007812500182 is not listed on IDEAS
    3. repec:eee:pubeco:v:150:y:2017:i:c:p:53-74 is not listed on IDEAS
    4. Marin Lysák & Christian Bugge-Henriksen, 2016. "Current status of climate change adaptation plans across the United States," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(3), pages 323-342, March.
    5. Marianne Fay & Stephane Hallegatte & Adrien Vogt-Schilb & Julie Rozenberg & Ulf Narloch & Tom Kerr, 2015. "Decarbonizing Development," World Bank Publications, The World Bank, number 21842.
    6. Itkonen, Juha, 2017. "Efficiency and dependency in a network of linked permit markets," Research Discussion Papers 20/2017, Bank of Finland.
    7. Wright, Evelyn & Kanudia, Amit, 2014. "Low carbon standard and transmission investment analysis in the new multi-region US power sector model FACETS," Energy Economics, Elsevier, vol. 46(C), pages 136-150.
    8. Houde, Sebastien & Aldy, Joseph E., 2014. "Belt and Suspenders and More: The Incremental Impact of Energy Efficiency Subsidies in the Presence of Existing Policy Instruments," Discussion Papers dp-14-34, Resources For the Future.
    9. Burtraw, Dallas & Woerman, Matt, 2013. "Economic ideas for a complex climate policy regime," Energy Economics, Elsevier, vol. 40(S1), pages 24-31.
    10. Cohen, Alex & Keiser, David, 2016. "The Effectiveness of Overlapping Pollution Regulation: Evidence from the Ban on Phosphate in Dishwasher Detergent," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235533, Agricultural and Applied Economics Association.
    11. William M. Shobe & Dallas Burtraw, 2012. "Rethinking Environmental Federalism In A Warming World," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1-33.
    12. Lade, Gabriel E. & Lin Lawell, C.-Y. Cynthia, 2015. "The design and economics of low carbon fuel standards," Research in Transportation Economics, Elsevier, vol. 52(C), pages 91-99.
    13. repec:oup:renvpo:v:11:y:2017:i:1:p:59-79. is not listed on IDEAS
    14. Carmen Arguedas & Dietrich Earnhart & Sandra Rousseau, 2017. "Non-uniform implementation of uniform standards," Journal of Regulatory Economics, Springer, vol. 51(2), pages 159-183, April.
    15. Castledine, A. & Moeltner, K. & Price, M.K. & Stoddard, S., 2014. "Free to choose: Promoting conservation by relaxing outdoor watering restrictions," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 324-343.

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