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Unintended consequences from nested state and federal regulations: The case of the Pavley greenhouse-gas-per-mile limits

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  • Goulder, Lawrence H.
  • Jacobsen, Mark R.
  • van Benthem, Arthur A.

Abstract

This paper reveals significant unintended consequences from recent 14-state efforts to reduce greenhouse gas emissions through limits on greenhouse gases per mile from new cars. We show that while such efforts significantly reduce emissions from new cars sold in the adopting states, they cause substantial emissions increases from new cars sold in other (non-adopting) states and from used cars. The costs per avoided ton of emissions are approximately twice as high once such offsets are recognized.

Suggested Citation

  • Goulder, Lawrence H. & Jacobsen, Mark R. & van Benthem, Arthur A., 2012. "Unintended consequences from nested state and federal regulations: The case of the Pavley greenhouse-gas-per-mile limits," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 187-207.
    • Handle: RePEc:eee:jeeman:v:63:y:2012:i:2:p:187-207
    DOI: 10.1016/j.jeem.2011.07.003
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