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Media type:
E-Article
Title:
A Synthetic Control Assessment of the Green Paradox: The Role of Climate Action Plans
Contributor:
Steinkraus, Arne
Published:
Walter de Gruyter GmbH, 2019
Published in:
German Economic Review, 20 (2019) 4, Seite e545-e570
Language:
English
DOI:
10.1111/geer.12176
ISSN:
1468-0475;
1465-6485
Origination:
Footnote:
Description:
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.