Overlapping Climate Policies

Grischa Perino, Robert Ritz and Arthur van Benthem

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: Major carbon-pricing systems in Europe and North America involve multiple jurisdictions (countries or states). Individual jurisdictions often pursue additional Initiatives – such as unilateral carbon price oors, legislation to phase out coal, aviation taxes or support programs for renewable energy – that overlap with the wider carbon-pricing system. We develop a general framework to study how the climate benefit of such overlapping policies depends on their design, location and timing. Some policies leverage additional climate benefits elsewhere in the system while others backfire by raising aggregate emissions. Our model encompasses almost every type of carbon-pricing system used in practice.

Keywords: Overlapping policy; internal carbon leakage; waterbed effect; cap-and-trade; carbon pricing; hybrid regulation (search for similar items in EconPapers)
JEL-codes: H23 Q54 (search for similar items in EconPapers)
Date: 2020-11-24
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
Note: rar36
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://www.econ.cam.ac.uk/sites/default/files/pub ... e-pdfs/cwpe20111.pdf

Related works:
Working Paper: Overlapping Climate Policies (2022)
Working Paper: Overlapping Climate Policies (2020)
Working Paper: Overlapping Climate Policies (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:20111

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