Federalism in the Green House: Defining a Role for States in a Federal Cap-and-Trade Program

States: Federal,
Resource Type: Policy Brief

Adoption Year: 2008
Abstract: Defining a role for states within a federal cap-and-trade program will require balancing the benefits of preserving states’ ability to innovate and spur emissions reductions with the challenges that state-by-state regulation may create for some businesses. Finding the approach that draws on the unique strengths of each level of government will help ensure a more effective nationwide cap-and-trade program and a more cost-effective means for reducing emissions. However, it requires expressly providing a mechanism for state action in the federal law. This policy brief presents the competing arguments for state-led and federal-led climate legislation, and argues for a third—“hybrid”—approach that maximizes the strengths of each level...
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