Keep calm and carry on emitting: cap-and-trade rules, local emissions and growth

Danilo V. Mascia; Enrico Onali

doi:10.1080/00343404.2023.2194315

Keep calm and carry on emitting: cap-and-trade rules, local emissions and growth

Danilo V. Mascia
, Enrico Onali^*

^*Corresponding author for this work

Research output: Contribution to journal › Article (Academic Journal) › peer-review

2 Citations (Scopus)

Abstract

We estimate the impact of the Cap-and-Trade Program (CATP) in California on regional greenhouse gas emissions and economic growth. Our preferred identification strategies, based on spatial distance and county-level contiguity, fail to provide evidence of a reduction in regional emissions or economic growth due to the CATP. Multi-state organisations do not transfer emissions to non-Californian facilities, but parent-level concentration in emissions changes, consistent with an insofar unexplored form of regulatory arbitrage. Overall, our results highlight the importance of a regional approach when designing climate policies and evaluating their effects.

Original language	English
Pages (from-to)	220-237
Number of pages	18
Journal	Regional Studies
Volume	58
Issue number	1
Early online date	2 May 2023
DOIs	https://doi.org/10.1080/00343404.2023.2194315
Publication status	Published - 2 Jan 2024

Bibliographical note

Publisher Copyright:
© 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 13 Climate Action

Keywords

climate policy
CO emissions
economic growth
regional contiguity

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10.1080/00343404.2023.2194315Licence: CC BY-NC-ND

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title = "Keep calm and carry on emitting: cap-and-trade rules, local emissions and growth",

abstract = "We estimate the impact of the Cap-and-Trade Program (CATP) in California on regional greenhouse gas emissions and economic growth. Our preferred identification strategies, based on spatial distance and county-level contiguity, fail to provide evidence of a reduction in regional emissions or economic growth due to the CATP. Multi-state organisations do not transfer emissions to non-Californian facilities, but parent-level concentration in emissions changes, consistent with an insofar unexplored form of regulatory arbitrage. Overall, our results highlight the importance of a regional approach when designing climate policies and evaluating their effects.",

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AU - Onali, Enrico

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N2 - We estimate the impact of the Cap-and-Trade Program (CATP) in California on regional greenhouse gas emissions and economic growth. Our preferred identification strategies, based on spatial distance and county-level contiguity, fail to provide evidence of a reduction in regional emissions or economic growth due to the CATP. Multi-state organisations do not transfer emissions to non-Californian facilities, but parent-level concentration in emissions changes, consistent with an insofar unexplored form of regulatory arbitrage. Overall, our results highlight the importance of a regional approach when designing climate policies and evaluating their effects.

AB - We estimate the impact of the Cap-and-Trade Program (CATP) in California on regional greenhouse gas emissions and economic growth. Our preferred identification strategies, based on spatial distance and county-level contiguity, fail to provide evidence of a reduction in regional emissions or economic growth due to the CATP. Multi-state organisations do not transfer emissions to non-Californian facilities, but parent-level concentration in emissions changes, consistent with an insofar unexplored form of regulatory arbitrage. Overall, our results highlight the importance of a regional approach when designing climate policies and evaluating their effects.

KW - climate policy

KW - CO emissions

KW - economic growth

KW - regional contiguity

U2 - 10.1080/00343404.2023.2194315

DO - 10.1080/00343404.2023.2194315

M3 - Article (Academic Journal)

AN - SCOPUS:85158823265

SN - 0034-3404

VL - 58

SP - 220

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JO - Regional Studies

JF - Regional Studies

IS - 1

ER -

Keep calm and carry on emitting: cap-and-trade rules, local emissions and growth

Abstract

Bibliographical note

UN SDGs

Keywords

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