Hybrid Climate Policy Instruments Can Substantially Reduce National Carbon Pollution

106 Pages Posted: 30 Mar 2020

See all articles by Alice Lépissier

Alice Lépissier

Bren School of Environmental Science and Management - University of California

Matto Mildenberger

University of California, Santa Barbara (UCSB) - Department of Political Science

Date Written: March 3, 2020

Abstract

Countries around the world require ambitious and effective policy instruments to mitigate climate change. Yet, many governments have struggled to pass efficient, economy-wide carbon prices. Instead, climate reforms often comprise hybrid policy instruments that bundle pricing, regulatory, and subsidy-based measures in a complex distributive bargain between producers, consumers, and government actors. Here, we estimate the causal effect of one major hybrid climate reform - the United Kingdom's 2001 Climate Change Programme (CCP) - on the country's carbon pollution trajectory. Using synthetic control methods, we show that, in 2005, the UK's CO2 emissions were 9.8% lower relative to what they would have been if the CCP had not been passed. Our results offer empirical confirmation that hybrid policy instruments can unilaterally reduce domestic carbon pollution, even after making concessions to producers, and in the absence of a legally binding global climate treaty.

Keywords: Climate Policy, Carbon Pricing, Causal Inference

JEL Classification: C14, C54, Q54

Suggested Citation

Lépissier, Alice and Mildenberger, Matto, Hybrid Climate Policy Instruments Can Substantially Reduce National Carbon Pollution (March 3, 2020). Available at SSRN: https://ssrn.com/abstract=3549050 or http://dx.doi.org/10.2139/ssrn.3549050

Alice Lépissier (Contact Author)

Bren School of Environmental Science and Management - University of California

Bren Hall, 2400 University of California
Santa Barbara, CA 93106-5131
United States

Matto Mildenberger

University of California, Santa Barbara (UCSB) - Department of Political Science ( email )

Dept. of Political Science
University of California
Santa Barbara, CA 93106-9420
United States

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