IDEAS home Printed from https://ideas.repec.org/p/ags/aaea26/404470.html

Spillovers in a cap-and-trade program: Evidence from the regional greenhouse gas initiative

Author

Listed:
  • Yang, Meng
  • Zheng, Yanan
  • An, Henry
  • Qiu, Feng

Abstract

Subnational climate policies, such as the Regional Greenhouse Gas Initiative (RGGI) in the United States, can generate cross-border effects, including emissions leakage and positive spatial spillovers. We estimate a spatial difference-in-differences (DiD) model to evaluate these spillovers. Our spatial DiD framework separately estimates three effects: direct effects on participating states, spillover effects among RGGI states, and spillover effects to neighboring non-participating states. We find significant reductions in coal, natural gas, and petroleum consumption in RGGI states, along with notable spillover effects within the regulated group and into nearby unregulated states. Our analysis shows that subnational policies may lead to positive unintended consequences in addition to the well- known negative leakage effects.

Suggested Citation

  • Yang, Meng & Zheng, Yanan & An, Henry & Qiu, Feng, 2026. "Spillovers in a cap-and-trade program: Evidence from the regional greenhouse gas initiative," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404470, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404470
    DOI: 10.22004/ag.econ.404470
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/404470/files/177524_193293_115232_AAEA_draft_0529.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.404470?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea26:404470. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.