Unintended consequences from nested state and federal regulations: The case of the Pavley greenhouse-gas-per-mile limits

Lawrence H. Goulder, Mark R. Jacobsen and Arthur A. van Benthem

Journal of Environmental Economics and Management, 2012, vol. 63, issue 2, 187-207

Abstract: This paper reveals significant unintended consequences from recent 14-state efforts to reduce greenhouse gas emissions through limits on greenhouse gases per mile from new cars. We show that while such efforts significantly reduce emissions from new cars sold in the adopting states, they cause substantial emissions increases from new cars sold in other (non-adopting) states and from used cars. The costs per avoided ton of emissions are approximately twice as high once such offsets are recognized.

Keywords: Nested regulation; Emissions leakage; Greenhouse gas limits; Climate policy; CAFE standard; Fuel economy; Simulation model (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:63:y:2012:i:2:p:187-207

DOI: 10.1016/j.jeem.2011.07.003

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