A Synthetic Control Assessment of the Green Paradox: The Role of Climate Action Plans
Published online on October 23, 2019
Abstract
["German Economic Review, Volume 20, Issue 4, Page e545-e570, November 2019. ", "\nAbstract\nThis 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.\n"]