Carbon Taxation and Policy Labeling: Experience from American States and Canadian Provinces

A vast economics literature embraces taxation of the carbon content of fossil fuels as the superior policy approach for reducing greenhouse gas emissions. However, experience around the world suggests that carbon taxes face exceedingly difficult political hurdles. Federal experience in the United States and in Canada confirms this pattern. This article reviews sub‐federal policy development among American states and Canadian provinces, a great many of which have pursued climate policy development. With one major exception, explicit carbon taxation appears to remain a political nonstarter. At the same time, states and provinces have been placing indirect carbon prices on fossil fuel use through a wide range of policies. These tend to strategically alter labeling, avoiding the terms of “tax” and “carbon” in imposing costs. The article offers a framework for considering such strategies and examines common design features, including direct linkage between cost imposition and fund usage to build political support.     

The Durability of Carbon Cap‐and‐Trade Policy

The surge of American states' adoption of policies to mitigate climate change in the late 1990s and 2000s appeared to constitute a first wave of expanding use of market‐based policy tools such as carbon cap‐and‐trade in the absence of binding federal constraints. Instead, a substantial number of states have rescinded earlier policy commitments, as have Canadian provincial partners, while others have remained engaged or even expanded their policies. This article examines the durability of the three regional cap‐and‐trade zones that were established with comparable structure and intent but met very different fates. The analysis of these regional entities places particular emphasis on their political resilience across election cycles, their ability to be flexible and adapt administratively through mid‐course adjustments, and their capacity to build constituency support through benefit‐allocation to offset opposition linked to cost imposition.     

Comparative Climate Change Policy and Federalism: An Overview

This commentary provides an overview of the four papers in this issue of Review of Policy Research on the politics of climate change. The papers all address in one way or another aspects of how federal‐type systems are dealing with the collective action and multilevel governance issues of climate change policy. The comparative study of federal systems provides insight into how domestic authority is so often overlapping and divided when dealing with greenhouse gas emissions and climate change. Federal arrangements offer a rich array of norms, institutions, and practices for tackling these problems. Federal systems grapple continuously with the kinds of issues that are the most intractable in the climate change case, such as overcoming interregional differences of interests and values. A common federal feature is competition among subnational governments and between them and national or federated governments over climate change policy, which has been especially significant in the United States and in Canada in the relative absence of national action––although soberingly, the whole is as yet nowhere near as great as the sum of the parts. More significant, but rarer is the achievement of tighter coordination in federal systems achieved through intergovernmental co‐decision, as seen in the European Community and Australia. This has been accomplished in large part due to a consensus among all intergovernmental parties on the nature of the problem and congruence with the existing international regime, characteristics missing in the North American context.     

Policy Networks, Federal Arrangements, and the Development of Environmental Regulations: A Comparison of the Canadian and American Agricultural Sectors

Both studies of federations and studies of policy networks have sought to produce explanations for observed patterns of policy divergence and designs. However, both have evolved in parallel, insights rarely transferring from one to the other. This article reconciles the two types of studies. More specifically, it provides an understanding of the divergent efforts of the United States and Canada with regard to the adoption of environmental regulations for the agricultural sector, which emphasizes the establishment of policy networks through interactions between past policy decisions and federal arrangements. The American federal structure, when combined with unrelated agricultural policy decisions, shaped policy networks in such a way as to enable the adoption of stringent environmental regulations for agriculture. In contrast, the Canadian federal structure, also in conjunction with past policy decisions, prevented the creation of policy networks capable enough to design similarly stringent agro-environmental regulations.     

Creating Broader Research Impacts through Boundary Organizations

Climate science research documents and predicts changes in the physical environment. This information informs policy decisions and public programs through the design of human interventions that promote adaptive management. Since the early 2000s, federal funding has led to the creation of transdisciplinary regional climate workgroups to facilitate integrative knowledge coproduction and promote shared use of research results by scientific and nonscientific stakeholders. Labeled “boundary organizations,” these workgroups are tasked with facilitating partnerships between climate science researchers and practitioners with expertise in multiple physical and social science disciplines. When these organizations are successful, scientific findings and practitioner experiences are integrated to synergistically create usable knowledge about adaptive management that provides direct public value and creates broader societal impacts. This article explores the broader impacts provided by these boundary organizations through the establishment of regional research agendas and the communication of research results in ways that influence regional public policy and promote adaptive management.     

The Influence of Federal Regional Offices on State Medicaid Maternal and Child Health-Care Services

This article focuses on the influence of federal regional administrativeoffices on maternal and child health-care services in stateMedicaid programs. The empirical results demonstrate that regionaladministrative offices affect the adoption of state policy choices.More traditional economic and political variables seem to havelittle direct impact These findings provide important insightsinto the role of federal regional offices in state Medicaidmaternal and child health-care services. They emphasize theneed for further empirical research on the exact processes bywhich regional administrative offices exert their impact onthe American policy process.     

FEDERALISM, POLICY, AND INNOVATION IN CORRECTIONS

State governments have historically dominated corrections policy, with little federal intervention. But over the past two decades, the trend has been toward "nationalizing" corrections policy, with less interstate variation and more federal standards, through the Safe Streets Act and other legislation. As federal funding declines, it may be expected that there will be a hiatus in state corrections reform, though national standards may survive if the federal courts continue to require state correctional systems to comply with federal laws previously implemented.     

Sub-state Climate Pioneers: The Case of Scotland

Climate change poses a global challenge, but many of the most ambitious and innovative efforts to confront it have emerged from the sub-state level. While such action has received significant attention in North America, less attention has been paid to European sub-state nations and regions, even though several of these regions are at the forefront of policy efforts to reduce carbon emissions and promote renewable energy. This article begins to fill that knowledge gap. It explores the puzzle as to why, and how, given their more limited scope for policy action, some sub-state governments position themselves as ‘climate pioneers’. The article undertakes a heuristic case study of Scotland, which has developed a particularly ambitious climate change and renewable energy programme. Drawing on public policy literature, we use the case study to consider the extent to which such ambition is enabled by constitutional and fiscal capacity, facilitated by a cohesive policy network, and motivated by economic and political goals. While we find evidence of these enabling features in the Scottish case, we argue that understanding sub-state climate action also necessitates examining such action through the lens of territorial politics. Adopting a territorial perspective highlights the opportunities, constraints and motivations associated with the politics of territorial identity and multi-level government.     

THE HEARTLANDS OF AMERICAN GOVERNMENT: RECENT DEVELOPMENTS IN THE US STATES

Abstract: Over recent years the American states have re-emerged as centres of policy innovation and reasserted themselves within the federal system. In contrast, at least until Bill Clinton's accession to the presidency, the federal government has lost the initiative. Indeed, Clinton's accession from what in the past would have been regarded as an obscure southern governorship symbolises the shift of the states to the centre stage of American politics. This article considers the reasons for this shift, stressing the generational change among the governors, the new economic and social challenges faced by the states and the increasing withdrawal of the federal government from the state sphere. In terms of the prospects for the future of American federalism, federal government is likely to withdraw further under Clinton, reversing the trend of earlier Democratic presidencies. Indeed, thanks to the efforts of governors like Clinton, state governments are now better equipped than ever before to shoulder new responsibilities. Their tax base has widened, though many states have faced difficult budgetary situations in the early 1990s. The organisation and structure of most state governments have been modernised, if slowly given the obstacles inherent in the separation of powers. The new breed of governor has a more managerial approach than earlier generations, and contemporary governors have sought to centralise their power within the executive branch. As state legislatures have also asserted their influence over the executive branch, gubernatorial influence has usually been enhanced at the expense of other power centres within the executive.     

The Color of Devolution: Race, Federalism, and the Politics of Social Control

In this article, we seek to advance scholarship on the origins and consequences of policy devolution by analyzing state decisions to give local authorities control over welfare policy. The first part of our analysis explores the political forces that systematically influence state decisions to cede policy control to lower-level jurisdictions. In this context, we propose a general Racial Classification Model of how race influences social policy choice. Our findings support this model as well as social control perspectives on welfare provision. Building on these results, we then show how modest but consistent racial effects on policy choices concatenate to produce large disparities in the overall policy regimes that racial groups encounter in the federal system. The empirical findings illuminate the fundamental role that federalism plays in the production of contemporary racial disparities and in the recent turn toward neoliberal and paternalist policies in American poverty governance.     

Institutional shifts and punctuated patterns in digital policy

While digital policies provide significant value within contemporary governance, not many governments' digital policies are adapted to rapidly changing technologies and associated expectations. The limited adaptability can be explained by governments' focus on institutional shifts as an instrument to generate policy changes. Therefore, this article examines the impact of institutional shifts on digital policy by leveraging the Punctuated Equilibrium Theory (PET) as a lens to explore the Belgian federal government between 2000 and 2020. This is done through performing a distributional application of the PET and an explaining-outcome congruence case study. The results highlight the role of institutional shifts in directing digital policy, but also underscore the importance of other factors (i.e., policy image, attention allocation and/or structure of the political system) and the presence of policy entrepreneurs to explain the (in)stability of digital policy.     

The Macroeconomic Effects of 2017 Through 2025 Federal Fuel Economy and Greenhouse Gas Emissions Standards

In the absence of a national carbon price, the federal Corporate Average Fuel Economy standards and the related greenhouse gas emissions (GHG) standards are the primary mechanisms through which the U.S. reduces transportation GHG emissions. In 2012, these standards were set to rise for light‐duty vehicles between 2017 and 2025, eventually achieving a target of 54.5 miles per gallon in 2025. Since 2012, conditions have changed: forecasts of future gasoline prices have dropped dramatically, consumers have demanded larger vehicles, and the cost of compliance appears to be larger than previously thought. In this article, we analyze the possible macroeconomic effects of the standards with both 2012 inputs and updated inputs to reflect these new market developments. The results reveal that the short‐term effects of the federal standards will be negative, but the long‐term effects will be positive, using both 2012 and updated inputs. The transition from annual negative employment impacts to positive impacts occurs between 2023 and 2026, depending on which set of assumptions are used. Possible revisions to the standards that freeze them at 2020 levels or decrease their stringency reduce short‐term negative impacts but also reduce long‐term positive impacts. We conclude with a discussion of policy implications as they relate to the current energy and climate policy conditions.     

Public Lands Policy and Economic Trends in Gateway Communities

From the mid‐1960s through 1980, major policy changes were adopted as a result of federal and state public lands protection statutes. This article analyzes the impact these policy changes have had upon the economies of gateway communities, a subject of limited discussion in the scholarly literature. One conclusion is that gateway community economies have become less dependent on resources extraction. This analysis finds that several factors––beyond policy change––have influenced the shift away from resources extraction. Likewise, there is the question over what economic mainstays have stepped in to fill the resources extraction void? For many gateway communities, it appears that the answer has been recreational tourism. The implications of this economic shift within gateway communities are explored.     

States on Steroids: The Intergovernmental Odyssey of American Climate Policy

Climate change has conventionally been framed as an issue that would be addressed by an international regime established through negotiation among nation‐states. The experience of policy development in the decade following the signing of the Kyoto Protocol indicates that climate change also needs to be examined as a challenge of multilevel governance. The increasingly central role of state governments in American climate policy formation squares with recent experience in other Western democracies that share authority across governmental levels. This paper examines the American experience, considering factors that have contributed to a state‐centric policy process and using that body of experience to assess competing strategic choices faced by individual states based on their mix of emission trends and policy adoption rates. In turn, the collective state experience allows for consideration of the varied political feasibility of competing climate policy tools that remain under active review in subnational, national, and international contexts. The paper concludes with a set of scenarios that explore different ways in which a state‐centric system may be integrated with expanding involvement at the national level.     

Public Attitudes toward Climate Science and Climate Policy in Federal Systems: Canada and the United States Compared1

Multilevel governance poses several challenges for the politics of climate change. On the one hand, the unequal distribution of power and interests can serve as a barrier to implementing coherent policy at a federal level. On the other, these features also enable policy leadership among sub‐federal units. In the context of wide variation in climate policy at both national and sub‐federal levels in Canada and in the United States, this paper utilizes an original data set to examine public attitudes and perceptions toward climate science and climate change policy in two federal systems. Drawing on national and provincial/state level data from telephone surveys administered in the United States and in Canada, the paper provides insight into where the public stands on the climate change issue in two of the most carbon‐intensive federal systems in the world. The paper includes the first directly comparable public opinion data on how Canadians and Americans form their opinions regarding climate matters and provides insight into the preferences of these two populations regarding climate policies at both the national and sub‐federal levels. Key findings are examined in the context of growing policy experiments at the sub‐federal level in both countries and limited national level progress in the adoption of climate change legislation.     

How American Core Values Influence Public Policy: Lessons From Federal Aid to Small Business, 1953–1993

Why does the federal government provide aid for small business? This article contends that American core values are one of the sources of small business aid. Rather than taking the values/policy congruence approach of the national values school, it demonstrates a mechanism through which core values have influenced small business aid and through which core values likely influence other policies. The focus is on the processes of policy problem definition. While a role for core values in problem definition processes has been noted previously, core values have neither been a center of attention, nor have the various paths of values influence been linked. Analysis of the problems defined in the legislative histories of 39 systemically selected small business aid enactments, 1953–1993, shows avenues of values influence that have been under-appreciated or not appreciated at all.     

The office of policy analysis in the department of the interior

The history of a particular policy office, located in the U.S. Department of the Interior, is reviewed from the standpoint of a long-time participant-observer. This office played an active part in the formation of federal policies with respect to the leasing of Outer Continental Shelf oil and gas, the leasing of federally owned coal, and the supply and distribution of federally controlled water in the west, but in many other areas the office was less involved. The article examines the factors that affected the level of office involvement and, more generally, the character of office interactions with the various parts of the Interior Department. The problems of sustaining long-term agency support for a policy office and other issues with respect to the practice of policy analysis in government are discussed.     

Political Science and Prediction: What's Next for U.S. Climate Change Policy?

This article analyzes how U.S. climate change politics and policy making are changing in the public, private and civil society sectors, and how such changes are likely to influence U.S. federal policies. It outlines the current status of U.S. climate change action and explores four overlapping pathways of policy change: (1) the strategic demonstration of the feasibility of climate change action; (2) the creation and expansion of markets; (3) policy diffusion and learning; and (4) the creation and promulgation of norms about the need for more aggressive climate change action. These four pathways seek to fruitfully draw from rationalist and constructivist approaches to policy analysis, without collapsing or confusing the different logics. Building on this analysis, it predicts that future federal U.S. climate policy will include six major components: (1) A national cap on GHG emissions; (2) A national market based cap‐and‐trade GHG emissions trading scheme; (3) Mandatory renewable energy portfolio standards; (4) Increased national product standards for energy efficiency; (5) Increased vehicle fleet energy efficiency standards; and (6) Increased federal incentives for research and development on energy efficiency issues and renewable energy development. In addition, expanding federal climate policy may bring about significant changes in U.S. foreign policy as U.S. international re‐engagement on climate change is likely to occur only after the development of more significant federal policy.     

Merit by Any Other Name—Refraining the Civil Service First Principle

Merit has traditionally served as the foundation of public human resources management (HRM) policy and practice. Today, the concept is more closely associated with compensation (merit pay) than with values that drive behavior in federal HRM. As the Departments of Homeland Security and Defense struggle to create new HRM systems that promote results‐oriented government, the question arises, how does merit inform practice in these new systems? In this article, I identify the values that are influencing federal HRM decision making now and develop a model for merit‐based HRM systems in a less regulated environment through a view from three lenses: the historical evolution of the merit concept in American government, how merit is treated in the law, and how merit has been applied in Title‐5 exempt organizations. This discussion will help to create HRM policies and practices that are grounded in values that managers and employees can embrace and that translate into behaviors that promote both good relationships and results‐oriented performance.     

Devolution Paradox and the US South

There is an inherent trade-off in federalism regarding representation and equity. With the devolution of responsibilities to regional governments offering increased representation, there comes the inequity of services provided by some governments and not others. However, citizens in these federations may want the best of both worlds—desiring regional control but without the regional policy variation. This tension, dubbed ‘the devolution paradox’ in a study of federal countries in Europe, was less apparent in one key group of regions—those with historic ties through language, culture, or experience. This article examines US respondents to identify whether the devolution paradox is evident in this country and looks specifically at the South, a region with long-standing distinctiveness. We find that there is evidence of the devolution paradox among the American public and that the South is indeed different.