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Sharing the burden for climate change mitigation in the Canadian federation

Author

Listed:
  • Christoph Böhringer
  • Nicholas Rivers
  • Thomas Rutherford
  • Randall Wigle

Abstract

Dividing the burden for greenhouse gas abatement among the provinces has proven challenging in Canada and contributes to Canada's failure to limit emissions. This paper uses a computable general equilibrium model to compare a number of rules for sharing the burden of emission reductions among Canadian provinces. Because of the substantial heterogeneity among Canadian provinces, these different rules imply significantly different relative abatement effort among provinces, and also significantly different welfare implications. We compare these archetypal burden sharing rules to existing provincial emission reduction commitments and find that none of the standard burden sharing rules comes close to existing commitments.

Suggested Citation

  • Christoph Böhringer & Nicholas Rivers & Thomas Rutherford & Randall Wigle, 2015. "Sharing the burden for climate change mitigation in the Canadian federation," Canadian Journal of Economics, Canadian Economics Association, vol. 48(4), pages 1350-1380, November.
    • Handle: RePEc:cje:issued:v:48:y:2015:i:4:p:1350-1380
    DOI: 10.1111/caje.12152
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    Cited by:

    1. Zhang, Da & Peng, Hantang & Zhang, Lin, 2023. "Share of polluting input as a sufficient statistic for burden sharing," Energy Economics, Elsevier, vol. 121(C).
    2. Da Zhang & Marco Springmann & Valerie Karplus, 2016. "Equity and emissions trading in China," Climatic Change, Springer, vol. 134(1), pages 131-146, January.
    3. Meya, Jasper N. & Neetzow, Paul, 2021. "Renewable energy policies in federal government systems," Energy Economics, Elsevier, vol. 101(C).
    4. Jasper Meya & Paul Neetzow, 2019. "Renewable energy policies in federal government systems," Working Papers V-423-19, University of Oldenburg, Department of Economics, revised Jul 2019.
    5. Böhringer, Christoph & Rivers, Nicholas & Yonezawa, Hidemichi, 2016. "Vertical fiscal externalities and the environment," Journal of Environmental Economics and Management, Elsevier, vol. 77(C), pages 51-74.
    6. Babonneau, Frédéric & Haurie, Alain & Vielle, Marc, 2018. "Welfare implications of EU Effort Sharing Decision and possible impact of a hard Brexit," Energy Economics, Elsevier, vol. 74(C), pages 470-489.
    7. Roolfs, Christina & Gaitan Soto, Beatriz & Edenhofer, Ottmar & Lessmann, Kai, 2021. "Technology Beats Capital -- Sharing the Carbon Price Burden in Federal Europe," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242381, Verein für Socialpolitik / German Economic Association.
    8. repec:clg:wpaper:2015-15 is not listed on IDEAS
    9. Da Zhang & Marco Springmann & Valerie J. Karplus, 2016. "Equity and emissions trading in China," Climatic Change, Springer, vol. 134(1), pages 131-146, January.
    10. Meier, Jan-Niklas & Lehmann, Paul, 2022. "Optimal federal co-regulation of renewable energy deployment," Resource and Energy Economics, Elsevier, vol. 70(C).
    11. Sarah Dobson & G. Kent Fellows, 2017. "Big and Little Feet: A Comparison of Provincial Level Consumption- and Production-Based Emissions Footprints," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 10(23), September.
    12. Jared C. Carbone & Nicholas Rivers & Akio Yamazaki & Hidemichi Yonezawa, 2020. "Comparing Applied General Equilibrium and Econometric Estimates of the Effect of an Environmental Policy Shock," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(4), pages 687-719.
    13. Jared C. Carbone & Kenneth J. McKenzie, 2015. "Going Dutch? The Impact of Oil Price Shocks on the Canadian Economy," Working Papers 2015-07, Colorado School of Mines, Division of Economics and Business.
    14. Meier, Jan-Niklas & Lehmann, Paul, 2020. "Optimal federal co-regulation of renewable energy deployment," UFZ Discussion Papers 8/2020, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    15. Roolfs, Christina & Gaitan, Beatriz & Edenhofer, Ottmar, 2021. "Make or brake — Rich states in voluntary federal emission pricing," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    16. Beck, Marisa & Rivers, Nicholas & Yonezawa, Hidemichi, 2016. "A rural myth? Sources and implications of the perceived unfairness of carbon taxes in rural communities," Ecological Economics, Elsevier, vol. 124(C), pages 124-134.

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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