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Analysing preferences towards economic incentives in combating climate change: a comparative analysis of US states

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  • CRISTINA E. CIOCIRLAN

Abstract

In contrast to the federal government, some US states have taken an aggressive approach to curbing climate change. They use a variety of policy instruments to reduce greenhouse gases. These instruments can be categorized into two broad categories: economic incentives and command-and-control regulation. While the use of economic incentives has, on average, increased, some states employ them more than others. This article compares the propensity of different US states to employ economic incentives in the area of climate change. For this purpose, it analyses and tests four models: (i) a needs/responsiveness model, (ii) an interest group influence model, (iii) an innovation-and-diffusion model, and (iv) a combined model. Interestingly, this article finds that economic incentives are pushed out of the political agenda when states are confronted with a more severe problem in terms of carbon emissions and dependence on conventional energy. This article also finds support for the traditional, antagonistic view of 'industry versus environmentalists': electric utility companies tend to oppose economic incentives, while environmentalists and renewable energy producers tend to support them.

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  • Cristina E. Ciocirlan, 2008. "Analysing preferences towards economic incentives in combating climate change: a comparative analysis of US states," Climate Policy, Taylor & Francis Journals, vol. 8(6), pages 548-568, November.
    • Handle: RePEc:taf:tcpoxx:v:8:y:2008:i:6:p:548-568
    DOI: 10.3763/cpol.2007.0441
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    References listed on IDEAS

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    1. Don Fullerton, 2001. "A Framework to Compare Environmental Policies," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 224-248, October.
    2. Don Fullerton, 2001. "A Framework to Compare Environmental Policies," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 224-248, October.
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    Cited by:

    1. Kim, Serena Y., 2020. "Institutional arrangements and airport solar PV," Energy Policy, Elsevier, vol. 143(C).
    2. Yi, Hongtao, 2014. "Green businesses in a clean energy economy: Analyzing drivers of green business growth in U.S. states," Energy, Elsevier, vol. 68(C), pages 922-929.
    3. Yi, Hongtao, 2015. "Clean-energy policies and electricity sector carbon emissions in the U.S. states," Utilities Policy, Elsevier, vol. 34(C), pages 19-29.
    4. Bae, Hyunhoe & Yu, Sanguk, 2018. "Information and coercive regulation: The impact of fuel mix information disclosure on states’ adoption of renewable energy policy," Energy Policy, Elsevier, vol. 117(C), pages 151-159.
    5. Li, Hui & Yi, Hongtao, 2014. "Multilevel governance and deployment of solar PV panels in U.S. cities," Energy Policy, Elsevier, vol. 69(C), pages 19-27.
    6. Swallow, Kimberly A. & Swallow, Brent M., 2015. "Explicitly integrating institutions into bioeconomic modeling:," IFPRI discussion papers 1420, International Food Policy Research Institute (IFPRI).
    7. Cheng, Quan & Yi, Hongtao, 2017. "Complementarity and substitutability: A review of state level renewable energy policy instrument interactions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 683-691.

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