Overlapping Climate Policies

60 Pages Posted: 3 Jan 2022 Last revised: 21 Mar 2023

See all articles by Grischa Perino

Grischa Perino

University of Hamburg

Robert A. Ritz

University of Cambridge - Judge Business School

Arthur van Benthem

University of Pennsylvania - Business & Public Policy Department

Multiple version iconThere are 3 versions of this paper

Date Written: July 11, 2022

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

JEL Classification: H23, Q54

Suggested Citation

Perino, Grischa and Ritz, Robert A. and van Benthem, Arthur, Overlapping Climate Policies (July 11, 2022). Available at SSRN: https://ssrn.com/abstract=3998973 or http://dx.doi.org/10.2139/ssrn.3998973

Grischa Perino

University of Hamburg ( email )

Welckerstr. 8
Hamburg, 20354
Germany

HOME PAGE: http://sites.google.com/site/gperinosite/

Robert A. Ritz

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

Arthur Van Benthem (Contact Author)

University of Pennsylvania - Business & Public Policy Department ( email )

3641 Locust Walk
Philadelphia, PA 19104-6372
United States
215-898-3013 (Phone)

HOME PAGE: http://bepp.wharton.upenn.edu/profile/21174/

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
67
Abstract Views
449
Rank
482,743
PlumX Metrics