• 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.