Overlapping Climate Policies

Grischa Perino, Robert Ritz and Arthur van Benthem

No 13569, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The world is under pressure to deliver on the 2015 Paris Climate Agreement. Individual jurisdictions are enacting policies such as phasing out coal, taxing aviation, and supporting renewable energy. These often overlap with a wider multi-jurisdictional carbon-pricing system like the EU's Emissions Trading System. We develop a general framework to study how such "overlapping climate policies" can help combat climate change--depending on their design, location and timing. Some policies are truly complementary while others backfire by raising aggregate emissions. At a conceptual level, our model encompasses most carbon-pricing systems used in practice and a wide range of popular unilateral policies.

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: 2022-07
New Economics Papers: this item is included in nep-env and nep-reg
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Citations: View citations in EconPapers (21)

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Related works:
Working Paper: Overlapping Climate Policies (2020)
Working Paper: Overlapping Climate Policies (2020)
Working Paper: Overlapping Climate Policies (2019)
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