Columbia International Affairs Online: Policy Briefs

CIAO DATE: 03/2011

AB 32 and Climate Change: The National Context of State Policies for a Global Commons Problem

Robert N. Stavins

February 2011

Belfer Center for Science and International Affairs, Harvard University

Abstract

Why should anyone be interested in the national context of a state policy? In the case of California's Global Warming Solutions Act (AB 32), the answer flows directly from the very nature of the problem—global climate change, the ultimate global commons problem. Greenhouse gases (GHGs) uniformly mix in the atmosphere. Therefore, any jurisdiction taking action—whether a nation, a state, or a city—will incur the costs of its actions, but the benefits of its actions (reduced risk of climate-change damages) will be distributed globally. Hence, for virtually any jurisdiction, the benefits it reaps from its climate-policy actions will be less than the cost it incurs. This is despite the fact that the global benefits of action may well be greater—possibly much greater—than global costs.