Replication data for: Strategic Policy Choice in State-Level Regulation: The EPA's Clean Power Plan

Principal Investigator(s): View help for Principal Investigator(s) James B. Bushnell; Stephen P. Holland; Jonathan E. Hughes; Christopher R. Knittel

Version: View help for Version V1

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Code-and-Data			10/13/2019 05:09:AM
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Project Citation:

Bushnell, James B., Holland, Stephen P., Hughes, Jonathan E., and Knittel, Christopher R. Replication data for: Strategic Policy Choice in State-Level Regulation: The EPA’s Clean Power Plan. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114648V1

Project Description

Summary: The EPA's Clean Power Plan sets goals for CO2 emissions rate reductions by 2030 that vary substantially across states. States can choose the regulatory mechanism they use and whether or not to join with other states in implementing their goals. We analyze incentives to adopt rate standards versus cap-and-trade with theory and simulation. We show conditions where adoption of inefficient rate standards is a dominant strategy from both consumers' and generators' perspectives. Numerical simulations of the western electricity system highlight incentives for uncoordinated policies that lower welfare and increase emissions relative to coordination.

Scope of Project

JEL Classification:
      H76 State and Local Government: Other Expenditure Categories
      Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
      Q54 Climate; Natural Disasters and Their Management; Global Warming
      Q58 Environmental Economics: Government Policy

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Published Versions

V1 [2019-10-13]

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DDI 2.5

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