Challenges from State-Federal Interactions in US Climate Change Policy
Lawrence H. Goulder
Robert N. Stavins
American Economic Review
no. 3, May 2011
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.
Goulder, Lawrence H., and Robert N. Stavins.
"Challenges from State-Federal Interactions in US Climate Change Policy."
American Economic Review,
Industry Studies: Utilities and Transportation: Government Policy
Socialist Systems and Transitional Economies: Natural Resources; Energy; Environment
Climate; Natural Disasters; Global Warming
Environmental Economics: Government Policy