Executive Summary

Greenhouse & Statehouse: The Evolving State Government Role in Climate Change

Most analysis of policy options to address global climate change has focused on national and international levels of governance. Even within the United States, most scholars and journalists have concentrated on federal government capacity to engage in international negotiations and formulate nation-wide policies. This emphasis has tended to overshadow a remarkably - and increasingly - active process of policy formulation evident in the American states. This report is intended to provide an overview of this aspect of American climate change policy, considering recent trends and highlighting a range of case studies that cut across traditional policy sectors.

States have been formulating climate change policy for more than a decade, although their efforts have expanded and intensified in the past several years. In some cases, states have considered climate change mitigation explicitly while in others it has been an incidental benefit. Reflective of the vast scope of activity that generates greenhouse gases, state policies have been enacted that reduce these emissions in such areas as promotion of renewable energy, air pollution control, agriculture and forestry, waste management, transportation, and energy development, among others. In almost all cases, there have been multiple drivers behind and multiple benefits from these state policies. In Texas, for example, the desire for energy independence, economic development, and air pollution control drove the state to promote renewable energy. Not all states have demonstrated interest in these initiatives and some legislatures have taken steps to prevent state agencies from pursuing any efforts that are designed to reduce greenhouse gases. Nonetheless, there has been a remarkable increase and diversification of state policies since the late 1990s, reflected in their current operation in every region of the country. Collectively, they constitute a diverse set of policy innovations rich with lessons for the next generation of American climate change policy.

Much of this report is devoted to an examination of leading examples of innovation in various sectors, from renewable energy efforts in Texas to a cross-cutting approach in New Jersey. Nine case studies are presented in particular depth, followed by supplemental cases where appropriate. These cases tend to vary markedly from one another in detail and yet are linked by common design characteristics. First, they tend to have been supported through broad, bipartisan coalitions that received significant support from diverse stakeholders. State climate change policies have been signed into law by Governors who are Democrats, Republicans, and Independents. Second, they regularly have viewed climate change mitigation as an economic development opportunity. State policies have been crafted to foster long-term economic well-being, which has contributed to their broad base of support. Third, they reflect abundant state-level opportunities for innovation and policy entrepreneurship, often involving state officials who build coalitions around a particular idea for new policy. Many of the most effective entrepreneurs are not particularly well known outside their respective states but have helped redefine climate change policy with their efforts.

When viewed as a collection of efforts, these initiatives outline possible elements of a long-term climate change strategy for the United States. Diffusion of innovation from one state to others is already occurring and clusters of contiguous states are beginning to consider cooperative efforts. Some of these policies may also serve as models that warrant emulation by the federal government in developing a more comprehensive strategy for the nation. This is entirely consistent with the long-standing tradition in American governance whereby states serve as laboratories for subsequent federal policy. In turn, the vigorous and creative nature of state innovation in this area suggests that any future federal policy initiatives on global climate change consider carefully the significant roles that state governments may be able to play in achieving long-term reduction of greenhouse gases.