[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v34y2016i8p1693-1715.html
   My bibliography  Save this article

Cap-and-trade, crowding out, and the implications for municipal climate policy motivations

Author

Listed:
  • Evelyne St-Louis
  • Adam Millard-Ball
Abstract
Cities have emerged as important actors in climate change policy, implementing measures to reduce emissions from transportation, buildings, and waste. More recently, states such as California have implemented cap-and-trade programs to control greenhouse gases. However, a state-level cap handcuffs cities: by fixing emissions at the level of the cap, it precludes local governments from further reducing aggregate emissions. In this paper, we examine whether cities respond to the changed incentives presented by state-level programs. We find no evidence for crowding out: cities plan their emission reductions in similar ways regardless of state-level cap-and-trade programs. Our results suggest that cities likely have a range of motivations for their climate policy efforts- not simply a altruistic desire to improve the global environment.

Suggested Citation

  • Evelyne St-Louis & Adam Millard-Ball, 2016. "Cap-and-trade, crowding out, and the implications for municipal climate policy motivations," Environment and Planning C, , vol. 34(8), pages 1693-1715, December.
    • Handle: RePEc:sae:envirc:v:34:y:2016:i:8:p:1693-1715
    DOI: 10.1177/0263774X16636117
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0263774X16636117
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0263774X16636117?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
    ---><---

    References listed on IDEAS

    as
    1. Elena Bellini & Gianmarco I. P. Ottaviano & Dino Pinelli & Giovanni Prarolo, 2013. "Cultural Diversity and Economic Performance: Evidence from European Regions," Advances in Spatial Science, in: Riccardo Crescenzi & Marco Percoco (ed.), Geography, Institutions and Regional Economic Performance, edition 127, pages 121-141, Springer.
    2. Glaeser, Edward L. & Kahn, Matthew E., 2010. "The greenness of cities: Carbon dioxide emissions and urban development," Journal of Urban Economics, Elsevier, vol. 67(3), pages 404-418, May.
    3. Susanne C. Moser, 2007. "In the Long Shadows of Inaction: The Quiet Building of a Climate Protection Movement in the United States," Global Environmental Politics, MIT Press, vol. 7(2), pages 124-144, May.
    4. repec:wyi:journl:002260 is not listed on IDEAS
    5. Glaeser, Edward L. & Kahn, Matthew E., 2004. "Sprawl and urban growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 56, pages 2481-2527, Elsevier.
    6. Grischa Perino, 2013. "Private provision of public goods in a second-best world: Cap-and-trade schemes limit green consumerism," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 13-01, School of Economics, University of East Anglia, Norwich, UK..
    7. Galina Hale & Cheryl Long, 2011. "Did Foreign Direct Investment Put an Upward Pressure on Wages in China?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 59(3), pages 404-430, August.
    8. Lawrence H. Goulder, 2013. "Markets for Pollution Allowances: What Are the (New) Lessons?," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 87-102, Winter.
    9. Paul Twomey & Regina Betz & Iain MacGill, 2012. "Achieving additional emission reductions under a cap-and-trade scheme," Climate Policy, Taylor & Francis Journals, vol. 12(4), pages 424-439, July.
    10. Lutsey, Nicholas & Sperling, Daniel, 2008. "America's bottom-up climate change mitigation policy," Energy Policy, Elsevier, vol. 36(2), pages 673-685, February.
    11. Zhenghong Tang & Samuel Brody & Courtney Quinn & Liang Chang & Ting Wei, 2010. "Moving from agenda to action: evaluating local climate change action plans," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(1), pages 41-62.
    12. Lutsey, Nicholas P. & Sperling, Dan, 2008. "America's Bottom-Up Climate Change Mitigation Policy," Institute of Transportation Studies, Working Paper Series qt8jj755d4, Institute of Transportation Studies, UC Davis.
    13. Riccardo Crescenzi & Marco Percoco (ed.), 2013. "Geography, Institutions and Regional Economic Performance," Advances in Spatial Science, Springer, edition 127, number 978-3-642-33395-8.
    14. Brian Knight, 2002. "Endogenous Federal Grants and Crowd-out of State Government Spending: Theory and Evidence from the Federal Highway Aid Program," American Economic Review, American Economic Association, vol. 92(1), pages 71-92, March.
    15. Charles N. Noussair & Daan P. van Soest, 2014. "Economic Experiments and Environmental Policy," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 319-337, October.
    16. Cheryl Xiaoning Long, 2010. "Does the Rights Hypothesis Apply to China?," Journal of Law and Economics, University of Chicago Press, vol. 53(4), pages 629-650.
    17. Millard-Ball, Adam, 2012. "Do city climate plans reduce emissions?," Journal of Urban Economics, Elsevier, vol. 71(3), pages 289-311.
    18. William M. Shobe & Dallas Burtraw, 2012. "Rethinking Environmental Federalism In A Warming World," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1-33.
    19. Michael Boswell & Adrienne Greve & Tammy Seale, 2010. "An Assessment of the Link Between Greenhouse Gas Emissions Inventories and Climate Action Plans," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(4), pages 451-462.
    20. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    21. Noussair, C.N. & van Soest, D.P., 2014. "Economic Experiments and Environmental Policy : A Review," Discussion Paper 2014-001, Tilburg University, Center for Economic Research.
    22. Terry Dinan & Andrew Stocking, 2012. "U.S. Cap-and-Trade Markets: Constraining Participants, Transactions, and Prices," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 6(2), pages 169-189, July.
    23. Carolyn Kousky & Stephen H. Schneider, 2003. "Global climate policy: will cities lead the way?," Climate Policy, Taylor & Francis Journals, vol. 3(4), pages 359-372, December.
    24. Braaten, Ragnhild Haugli, 2014. "Testing deontological warm glow motivation for carbon abatements," Resource and Energy Economics, Elsevier, vol. 38(C), pages 96-109.
    25. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Armstrong, John H., 2019. "Modeling effective local government climate policies that exceed state targets," Energy Policy, Elsevier, vol. 132(C), pages 15-26.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Millard-Ball, Adam, 2012. "Do city climate plans reduce emissions?," Journal of Urban Economics, Elsevier, vol. 71(3), pages 289-311.
    2. Rowangould, Dana & Eldridge, Melody & Niemeier, Deb, 2013. "Incorporating regional growth into forecasts of greenhouse gas emissions from project-level residential and commercial development," Energy Policy, Elsevier, vol. 62(C), pages 1288-1300.
    3. Krause, Rachel M., 2012. "The impact of municipal governments' renewable electricity use on greenhouse gas emissions in the United States," Energy Policy, Elsevier, vol. 47(C), pages 246-253.
    4. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2012. "Are compact cities environmentally friendly?," Journal of Urban Economics, Elsevier, vol. 72(2), pages 123-136.
    5. Ansell, Christopher K. & Bartenberger, Martin, 2016. "Varieties of experimentalism," Ecological Economics, Elsevier, vol. 130(C), pages 64-73.
    6. Stevens, Mark R. & Senbel, Maged, 2017. "Are municipal land use plans keeping pace with global climate change?," Land Use Policy, Elsevier, vol. 68(C), pages 1-14.
    7. Wang, Rui, 2010. "Leaders, Followers and Laggards: Adoption of the U.S. Conference of Mayors Climate Protection Agreement in California," University of California Transportation Center, Working Papers qt7z31n285, University of California Transportation Center.
    8. Gaigne, Carl & Riou, Stephane & Thisse, Jacques-Francois, 2012. "Are Compact Cities Environmentally (and Socially) Desirable?," Working Papers 121692, University of Laval, Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE).
    9. Taedong Lee & Chris Koski, 2015. "Multilevel governance and urban climate change mitigation," Environment and Planning C, , vol. 33(6), pages 1501-1517, December.
    10. Dascher, Kristof, 2013. "City Silhouette, World Climate," MPRA Paper 48375, University Library of Munich, Germany.
    11. Damsø, Tue & Kjær, Tyge & Christensen, Thomas Budde, 2016. "Local climate action plans in climate change mitigation – examining the case of Denmark," Energy Policy, Elsevier, vol. 89(C), pages 74-83.
    12. Reinhard Steurer & Christoph Clar, 2015. "Is decentralisation always good for climate change mitigation? How federalism has complicated the greening of building policies in Austria," Policy Sciences, Springer;Society of Policy Sciences, vol. 48(1), pages 85-107, March.
    13. Miquel- Àngel Garcia-López & Adelheid Holl & Elisabet Viladecans-Marsal, 2013. "Suburbanization and highways: when the romans, the bourbons and the first cars still shape Spanish cities," Working Papers 2013/5, Institut d'Economia de Barcelona (IEB).
    14. Ann Foss, 2018. "Divergent responses to sustainability and climate change planning: The role of politics, cultural frames and public participation," Urban Studies, Urban Studies Journal Limited, vol. 55(2), pages 332-348, February.
    15. Grischa Perino, 2015. "Climate Campaigns, Cap and Trade, and Carbon Leakage: Why Trying to Reduce Your Carbon Footprint Can Harm the Climate," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(3), pages 469-495.
    16. Robert Habans & Matthew Thomas Clement & Andrew Pattison, 2019. "Carbon emissions and climate policy support by local governments in California: a qualitative comparative analysis at the county level," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 9(3), pages 255-269, September.
    17. Kai-Uwe Kuhn & Neslihan Uler, 2019. "Behavioral sources of the demand for carbon offsets: an experimental study," Experimental Economics, Springer;Economic Science Association, vol. 22(3), pages 676-704, September.
    18. Miquel- Àngel Garcia-López & Adelheid Holl & Elisabet Viladecans-Marsal, 2013. "Suburbanization and highways: when the romans, the bourbons and the first cars still shape Spanish cities," Working Papers 2013/5, Institut d'Economia de Barcelona (IEB).
    19. Armstrong, John H., 2019. "Modeling effective local government climate policies that exceed state targets," Energy Policy, Elsevier, vol. 132(C), pages 15-26.
    20. George C Homsy, 2016. "Powering sustainability: Municipal utilities and local government policymaking," Environment and Planning C, , vol. 34(6), pages 1076-1094, September.

    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:sae:envirc:v:34:y:2016:i:8:p:1693-1715. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: SAGE Publications (email available below). General contact details of provider: .

    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.