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  3. American Economic Review
  4. May 2011
  5. Challenges from State-Federal Interactions in US Climate Change Policy

Challenges from State-Federal Interactions in US Climate Change Policy

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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.

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

JEL Classification

  • 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