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American Economic Review: Vol. 101 No. 3 (May 2011)

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Challenges from State-Federal Interactions in US Climate Change Policy

Article Citation

Goulder, Lawrence H., and Robert N. Stavins. 2011. "Challenges from State-Federal Interactions in US Climate Change Policy." American Economic Review, 101(3): 253-57.

DOI: 10.1257/aer.101.3.253

Abstract

With a focus on two sorts of regulation—renewable electricity and clean energy standards, and automobile fuel-economy standards—we analyze problematic interactions that arise when state policies are nested within the domain of Federal policy. Here state efforts may fail to reduce greenhouse gas emissions nationally, and may compromise cost-effectiveness. Difficulties from overlapping regulations are avoidable through price- (as opposed to quantity-) based Federal policy. We identify some potentially positive interactions between state and Federal policies, and identify rationales for state action when Federal and state policies do not overlap.

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Authors

Goulder, Lawrence H. (Stanford U)
Stavins, Robert N. (Harvard U)

JEL Classifications

L94: Electric Utilities
L98: Industry Studies: Utilities and Transportation: Government Policy
P28: Socialist Systems and Transitional Economies: Natural Resources; Energy; Environment
Q54: Climate; Natural Disasters; Global Warming
Q58: Environmental Economics: Government Policy


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