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A Synthetic Control Assessment of the Green Paradox: The Role of Climate Action Plans

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  • Steinkraus Arne

    (Braunschweig University of Technology,Braunschweig, Germany)

Abstract

This paper extends the green paradox literature by providing empirical insights into its existence. To check the green paradox theory, I analyse the production of coal in four major coal-producing US states that announced a greenhouse gas action plan. To form a statement on whether there is a treatment effect caused by the green policy, I employ Synthetic Control Methods to calculate counterfactual coal production trajectories. I find that Montana experienced a high and statistically significant increase in coal production that is supported by a set of validity indicators. However, there is no evidence for a paradox in Kentucky, Pennsylvania and Virginia.

Suggested Citation

  • Steinkraus Arne, 2019. "A Synthetic Control Assessment of the Green Paradox: The Role of Climate Action Plans," German Economic Review, De Gruyter, vol. 20(4), pages 545-570, December.
    • Handle: RePEc:bpj:germec:v:20:y:2019:i:4:p:e545-e570
    DOI: 10.1111/geer.12176
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