Rethinking Environmental Federalism in a Warming World
Climate change policy analysis has focused almost exclusively on national policy and even on harmonizing climate policies across countries, implicitly assuming that the harmonization of climate policies at the subnational level would be mandated or guaranteed. We argue that the design and implementation of climate policy in a federal union will diverge in important ways from policy design in a unitary government. National climate policies built on the assumption of a unitary model of governance are unlikely to achieve the expected outcome due to interactions with policy choices made at the subnational level. In a federal system, the information and incentives generated by a national policy must pass through various levels of subnational fiscal and regulatory policy. Effective policy design must recognize both the constraints and opportunities presented by a federal structure of government. Furthermore, policies that take advantage of the federal structure of government can improve climate governance outcomes.
|Date of creation:||18 Jan 2012|
|Date of revision:|
|Publication status:||Published in Climate Change Economics|
|Note:||Forthcoming in Climate Change Economics|
|Contact details of provider:|| Postal: P.O. Box 400206|
Web page: http://www.coopercenter.org/econ
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
- Elinor Ostrom, 2014.
"A Polycentric Approach For Coping With Climate Change,"
Annals of Economics and Finance,
Society for AEF, vol. 15(1), pages 71-108, May.
- Ostrom, Elinor, 2009. "A polycentric approach for coping with climate change," Policy Research Working Paper Series 5095, The World Bank.
- Elinor Ostrom, 2008. "A Polycentric Approach For Coping With Climate Change," CEMA Working Papers 578, China Economics and Management Academy, Central University of Finance and Economics.
- Robert P. Inman & Daniel L. Rubinfeld, 1997. "Rethinking Federalism," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 43-64, Fall.
- Porter, David & Rassenti, Stephen & Shobe, William & Smith, Vernon & Winn, Abel, 2009. "The design, testing and implementation of Virginia's NOx allowance auction," Journal of Economic Behavior & Organization, Elsevier, vol. 69(2), pages 190-200, February.
- repec:dau:papers:123456789/10174 is not listed on IDEAS
- Strumpf, Koleman S, 2002. " Does Government Decentralization Increase Policy Innovation?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 207-41.
- Robert N. Stavins, 1998. "What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 69-88, Summer.
- James Bushnell & Carla Peterman & Catherine Wolfram, 2008.
"Local Solutions to Global Problems: Climate Change Policies and Regulatory Jurisdiction,"
Review of Environmental Economics and Policy,
Association of Environmental and Resource Economists, vol. 2(2), pages 175-193, Summer.
- Bushnell, James & Peterman, Carla & Wolfram, Catherine, 2008. "Local Solutions to Global Problems: Climate Change Policies and Regulatory Jurisdiction," Staff General Research Papers Archive 13125, Iowa State University, Department of Economics.
- Paul Missios & Ida Ferrara & Halis Murat Yildiz, 2011.
"Inter-regional Competition, Comparative Advantage, and Environmental Federalism,"
027, Ryerson University, Department of Economics.
- Ida Ferrara & Paul Missios & Halis Murat Yildiz, 2014. "Interregional competition, comparative advantage and environmental federalism," Canadian Journal of Economics, Canadian Economics Association, vol. 47(3), pages 905-952, August.
- Bohi, Douglas R. & Burtraw, Dallas, 1992. "Utility investment behavior and the emission trading market," Resources and Energy, Elsevier, vol. 14(1-2), pages 129-153, April.
- Ernst Fehr & Simon Gaechter, .
"Fairness and Retaliation: The Economics of Reciprocitys,"
IEW - Working Papers
040, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
- Ernst Fehr & Simon Gaechter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," CESifo Working Paper Series 336, CESifo Group Munich.
- Roberton C. Williams III, 2010.
"Growing State-Federal Conflicts in Environmental Policy: The Role of Market-based Regulation,"
in: Fiscal Federalism, pages 1092-1099
National Bureau of Economic Research, Inc.
- Williams, Roberton C., 2012. "Growing state–federal conflicts in environmental policy: The role of market-based regulation," Journal of Public Economics, Elsevier, vol. 96(11), pages 1092-1099.
- Roberton C. Williams III, 2010. "Growing State-Federal Conflicts in Environmental Policy: The Role of Market-Based Regulation," NBER Working Papers 16184, National Bureau of Economic Research, Inc.
- James Alm & H. Spencer Banzhaf, 2011.
"Designing Economic Instruments for the Environment in a Decentralized Fiscal System,"
1104, Tulane University, Department of Economics.
- James Alm & H. Spencer Banzhaf, 2012. "Designing Economic Instruments For The Environment In A Decentralized Fiscal System," Journal of Economic Surveys, Wiley Blackwell, vol. 26(2), pages 177-202, 04.
- Alm, James & Banzhaf, H. Spencer, 2007. "Designing economic instruments for the environment in a decentralized fiscal system," Policy Research Working Paper Series 4379, The World Bank.
- Arimura, Toshi H., 2002. "An Empirical Study of the SO2 Allowance Market: Effects of PUC Regulations," Journal of Environmental Economics and Management, Elsevier, vol. 44(2), pages 271-289, September.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Ellerman,A. Denny & Convery,Frank J. & de Perthuis,Christian With contributions by-Name:Delbosc,Anaïs, 2010. "Pricing Carbon," Cambridge Books, Cambridge University Press, number 9780521196475, November.
- Dallas Burtraw & Karen Palmer, 2008. "Compensation rules for climate policy in the electricity sector," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(4), pages 819-847.
- John R. Swinton, 2002. "The Potential for Cost Savings in the Sulfur Dioxide Allowance Market: Empirical Evidence from Florida," Land Economics, University of Wisconsin Press, vol. 78(3), pages 390-404.
- 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 253-57, May.
- Wallace Oates, 2005. "Toward A Second-Generation Theory of Fiscal Federalism," International Tax and Public Finance, Springer, vol. 12(4), pages 349-373, August.
- Richard A. Posner, 1974.
"Theories of Economic Regulation,"
NBER Working Papers
0041, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:vac:wpaper:wp12-01. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (William M. Shobe)
If references are entirely missing, you can add them using this form.