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The paradox of climate policy diffusion

Author

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  • Savin, Ivan
  • Mundt, Philipp
  • Bellanca, Margherita

Abstract

Prior research produced contradicting evidence regarding the role of international influence in the diffusion of climate policies. To unravel this puzzle, we examine various policy instruments adopted by G20 countries, demonstrating that peer pressure stimulates convergence in the number of new policies adopted but divergence in their stringency. This suggests that policymakers emulate the appearance of their peers but not the rigor of regulation, creating opportunities for carbon leakage.

Suggested Citation

  • Savin, Ivan & Mundt, Philipp & Bellanca, Margherita, 2024. "The paradox of climate policy diffusion," BERG Working Paper Series 196, Bamberg University, Bamberg Economic Research Group.
    • Handle: RePEc:zbw:bamber:305288
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    References listed on IDEAS

    as
    1. Babutsidze, Zakaria & Chai, Andreas, 2018. "Look at me Saving the Planet! The Imitation of Visible Green Behavior and its Impact on the Climate Value-Action Gap," Ecological Economics, Elsevier, vol. 146(C), pages 290-303.
    2. Holzinger, Katharina & Knill, Christoph, 2004. "Competition and Cooperation in Environmental Policy: Individual and Interaction Effects," Journal of Public Policy, Cambridge University Press, vol. 24(1), pages 25-47, May.
    3. Bryan Bollinger & Kenneth Gillingham, 2012. "Peer Effects in the Diffusion of Solar Photovoltaic Panels," Marketing Science, INFORMS, vol. 31(6), pages 900-912, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    climate change; market instruments; policy adoption; variance decomposition; spatial model;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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