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Are Sub-National Agreements for Carbon Abatement Effective?

Author

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  • Terrence W. Iverson

    (Department of Economics, Colorado State University, Fort Collins, CO 80526, USA)

  • Joanne C. Burgess

    (Department of Economics, Colorado State University, Fort Collins, CO 80526, USA)

  • Edward B. Barbier

    (Department of Economics, Colorado State University, Fort Collins, CO 80526, USA)

Abstract

Although national commitments to the Paris Climate Accord have waned, carbon mitigation by sub-national entities is on the rise globally. We examine the effectiveness of sub-national jurisdictions (e.g., states, provinces, cities) in collectively enacting greenhouse gas abatement strategies. We develop a simple model to explore the conditions under which an agreement among sub-national jurisdictions within a country may lead to substantial carbon abatement relative to a national policy determined through majority rule. We find that, in the absence of a functional national policy response, a coordinated sub-national agreement can generate meaningful abatement. This could form an important stopgap measure in the absence of better alternatives.

Suggested Citation

  • Terrence W. Iverson & Joanne C. Burgess & Edward B. Barbier, 2020. "Are Sub-National Agreements for Carbon Abatement Effective?," Energies, MDPI, vol. 13(14), pages 1-9, July.
  • Handle: RePEc:gam:jeners:v:13:y:2020:i:14:p:3675-:d:385459
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    References listed on IDEAS

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    2. Jenkins, Jesse D., 2014. "Political economy constraints on carbon pricing policies: What are the implications for economic efficiency, environmental efficacy, and climate policy design?," Energy Policy, Elsevier, vol. 69(C), pages 467-477.
    3. William Nordhaus, 2018. "Projections and Uncertainties about Climate Change in an Era of Minimal Climate Policies," American Economic Journal: Economic Policy, American Economic Association, vol. 10(3), pages 333-360, August.
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