Abstract
The literature on global climate change has largely ignored the small but positive steps that many public and private actors are taking to reduce greenhouse gas emissions. A global policy is frequently posited as the only strategy needed. It is important to balance the major attention on global solutions as the only strategy for coping with climate change. Positive actions are underway at multiple, smaller scales to start the process of climate change mitigation. Researchers need to understand the strength of polycentric systems where enterprises at multiple levels may complement each other. Building a global regime is a necessity, but encouraging the emergence of a polycentric system starts the process of reducing greenhouse gas emissions and acts as a spur to international regimes to do their part.
Thanks to Dan Cole Eric Coleman Maria Claudia Lopez Jimmy Walker an anonymous reviewer and the editor of this journal for very useful comments on the earlier draft of this paper and to Patty Lezotte for her excellent editing. Sections of this paper draw on a report that I submitted to the World Bank entitled “A Polycentric Approach for Coping with Climate Change.” Financial support from the National Science Foundation and the MacArthur Foundation is gratefully acknowledged.
Originally published in Economic Theory, Volume 49, Number 2, February 2012 DOI 10.1007/s00199-010-0573-7.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
Many Web pages are now available for households and businesses to learn about new ways of saving energy. See, for example, the stories about ways to save energy in homes on the Environmental Defense Fund Web pages at http://www.fightglobalwarming.com/page.cfm?tagID=262 (accessed 20 February 2009).
- 2.
http://www.toronto.ca/environment/index.htm (accessed 9 February 2009).
- 3.
http://www.c40cities.org/ (accessed 1 February 2009).
- 4.
Global Warming Solutions Act of 2006, Calif. Assembly Bill 32.
- 5.
http://www.dep.state.fl.us/climatechange/ (accessed 27 June 2008).
- 6.
http://rggi.org/home/ (accessed 7 February 2009).
- 7.
See Clark (2006) for a review of policies that have been adopted by national governments related to fisheries that initially led to perverse outcomes—some of which were eventually reversed.
- 8.
The Department of Fisheries and Oceans in Canada, for example, developed a model of stock regeneration for northern cod that scientists later found to be flawed. Local cod fishers in Newfoundland raised serious questions in the late 1980s and predicted a near-term collapse; the Canadian government refused to listen and assured doubters that their model was correct. In 1992, however, the cod stock collapsed and the Canadian government declared a moratorium on all fishing in Canadian waters, which has generated very substantial costs for local fishing villages dependent upon that stock that they had earlier managed relatively effectively (Finlayson 1994; Finlayson and McCay 1998).
- 9.
John Vidal (2008), in an article in The Guardian (17 October 2008), stressed that recognizing forest community rights would be a more cost-effective mechanism for reducing emissions than paying organizations to plant trees. “A study by Jeffrey Hatcher, an analyst with Rights and Resources in Washington, found that it costs about $3.50 (€2) per hectare to recognize forest people’s land. The costs of protecting forests under REDD have been estimated at about €2000 per hectare.”.
References
Angelsen, A. (Ed.). (2009). Realising REDD+: National strategy and policy options. Bogor, Indonesia: CIFOR.
Asheim, G. B., Mitra, T., & Tungodden, B. (2010). Sustainable recursive social welfare functions. Economic Theory.
Baer, P., Harte, J., Haya, B., et al. (2000). Equity and greenhouse gas responsibility. Science, 289, 2287.
Barrett, S. (2007). Why cooperate? The incentive to supply global public goods. Oxford: Oxford University Press.
Botsen, W. J. W., Gowdy, J. M., & Van den Bergh, J. C. J. M. (2008). Cumulative CO2 emissions: Shifting international responsibilities for climate debt. Climate Policy, 8, 569–576.
Burniaux, J.-M., & Martins, J. O. (2010). Carbon leakages: A general equilibrium view. Economic Theory.
Chhatre, A., & Agrawal, A. (2008). Forest commons and local enforcement. PNAS, 105, 13286–13291.
Chichilnisky, G. (2010). Sustainable Markets with short sales. Economic Theory.
Chichilnisky, G., & Heal, G. (1994). Who should abate carbon emissions?: An international viewpoint. Economics Letters, 44, 443–449.
Chichilnisky, G., & Heal, G. (2000). Environmental markets: Equity and efficiency. New York: Columbia University Press.
Chipman, J.S., Tian, G.: Detrimental externalities, pollution rights, and the ‘Coase theorem’. Economic Theory (2010).
Chomitz, K. M. (2002). Baseline, leakage and measurement issues: How do forestry and energy projects compare? Climate Policy, 2, 35–49.
Clark, C. W. (2006). The worldwide crisis in fisheries: Economic models and human behavior. Cambridge: Cambridge University Press.
Cole, D. H. (2008). Climate change and collective action. Current Legal Problems, 61, 229–264.
Coleman, E. (2009). Institutional factors affecting ecological outcomes in forest management. Journal of Policy Analysis and Management, 28, 122–146.
Corbera, E., & Brown, K. (2008). Building institutions to trade ecosystem services: Marketing forest carbon in Mexico. World Development, 36, 1956–1979.
Daily, G. C., Polasky, S., Goldstein, J., et al. (2009). Ecosystem services in decision making: Time to deliver. Frontiers in Ecology and the Environment, 7, 21–28.
Dellink, R., Dekker, T., den Elzen, M., et al. (2009). Sharing the burden of adaptation financing. Amsterdam: Institute for Environmental Studies Newsletter.
den Elzen, M. G. J., Schaeffer, M., & Lucas, P. L. (2005). Differentiating future commitments on the basis of countries’ relative historical responsibility for climate change: Uncertainties in the ‘Brazilian Proposal’ in the context of a policy implementation. Climate Change, 71, 277–301.
Dietz, T., Gardner, G. T., Gilligan, J., Stern, P. C., & Vandenbergh, M. P. (2009). Household actions can provide a behavioral wedge to rapidly reduce US carbon emissions. PNAS, 106, 18452–18456.
Dutta, P. K., & Radner, R. (2010). Capital growth in a global warming model: Will China and India sign a climate treaty? Economic Theory.
Ebeling, J. (2008). Risks and criticisms of forestry-based climate change mitigation and carbon trading. In C. Streck, et al. (Eds.), Climate change and forests: Emerging policy and market opportunities (pp. 43–58). London: Chatham House.
Engel, K. H. (2006). State and local climate change initiatives: What is motivating state and local governments to address a global problem and what does this say about federalism and environmental law? Discussion Paper 06–36. Tucson: University of Arizona, James E. Rogers College of Law, Arizona Legal Studies (2006).
European Environmental Agency (EEA). (2006). Greenhouse Gas Emission Trends and Projections in Europe 2006. Luxembourg: Office for Official Publications of the European Communities. EEA Report No. 9, ISSN 1725–9177.
Figuières, C., & Tidball, M. (2010). Sustainable exploitation of a natural resource: A satisfying use of Chichilnisky’s criterion. Economic Theory.
Finlayson, A. C. (1994). Fishing for truth: A sociological analysis of northern cod stock assessment from 1977–1990. St. Johns: Memorial University of New Foundland, New Foundland Institution of Social and Economic Research.
Finlayson, A. C., & McCay, B. J. (1998). Crossing the threshold of ecosystem resilience: The commercial extension of northern cod. In F. Berkes, & C. Folke (Eds.), Linking social and ecological systems: Management practices and social mechanisms for building resilience (pp. 311–338). Cambridge: Cambridge University Press.
Fuller, M. C., Portis, S. C., & Kammen, D. M. (2009). Toward a low-carbon economy: Municipal financing for energy efficiency and solar power. Environment, 51, 22–32.
Gershenfeld, N., Samouhos, S., & Nordman, B. (2010). Intelligent infrastructure for energy efficiency. Science, 327, 1086–1087.
Gibson, C., Williams, J., & Ostrom, E. (2005). Local enforcement and better forests. World Development, 33, 273–284.
Goulder, L. H. (2009). California’s bold new climate policy. The Economists’ Voice, 4. Retrieved February 20, 2009, from http://www.bepress.com/ev/vol4/iss3/art5/.
Hayes, T., & Ostrom, E. (2005). Conserving the world’s forests: Are protected areas the only way? Indiana Law Review, 38, 595–617.
Hillman, T., & Ramaswami, A. (2010). Greenhouse gas emission footprints and energy use benchmarks for eight U.S. cities. Environmental Science & Technology, 44, 1902–1910.
Hoffman, M. J., & Eidelman, G. (2009). Experimenting with climate governance. Paper presented at the Amsterdam Human Dimensions of Environmental Change Meeting.
Intergovernmental Panel on Climate Change. (2007). Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report. Cambridge University Press.
Karp, L., & Zhang, J. (2010). Taxes versus quantities for a stock pollutant with endogenous abatement costs and asymmetric information. Economic Theory.
Kates, R. W., & Wilbanks, T. J. (2003). Making the global local: Responding to climate change concerns from the ground up. Environment, 45, 12–23.
Kaufman, L. (2009). A desire to keep up with neighbors is spurring conservation. New York Times. Retrieved January 30, 2009, from http://www.nytimes.com/2009/01/31/science/earth/31compete.html.
Lauwers, L. (2010). Intergenerational equity, efficiency, and constructability. Economic Theory.
Lecocq, F., & Hourcade, J.-C. (2010). Unspoken ethical issues in the climate affair: Insights from a theoretical analysis of negotiation mandates. Economic Theory.
Lohmann, L. (2008). Carbon trading, climate justice and the production of ignorance: Ten examples. Development, 51, 359–365.
Matthews, H. D., & Caldeira, K. (2008). Stabilizing climate requires near zero emissions. Geophysical Research Letters, 35, 1–5.
McGinnis, M. (Ed.). (1999a). Polycentric governance and development: Readings from the workshop in political theory and policy analysis. Ann Arbor: University of Michigan Press.
McGinnis, M. (Ed.). (1999b). Polycentricity and local public economies: Readings from the workshop in political theory and policy analysis. Ann Arbor: University of Michigan Press.
McGinnis, M. (Ed.). (2000). Polycentric games and institutions: Readings from the workshop in political theory and policy analysis. Ann Arbor: University of Michigan Press.
Michel, D. (2009). Foxes, hedgehogs, and greenhouse governance: Knowledge, uncertainty, and international policy-making in a warming world. Applied Energy, 86, 258–264.
Miller, C. A. (2004). Climate science and the making of a global political order. In S. Jasanoff (Ed.), States of Knowledge: The coproduction of science and social order (pp. 46–66). New York: Routledge.
Miller, P. (2009). Saving energy: It starts at home. Natl. Geogr., 215, 60–81.
Mumford, G. (2007). Psychology’s ability to curb energy use. Monitor on Psychology, 38, 20–21.
Nelson, E., Polasky, S., Lewis, D. J., et al. (2008). Efficiency of incentives to jointly increase carbon sequestration and species conservation on a landscape. PNAS, 105, 9471–9476.
Nelson, E., Mendoza, G., Regetz, J., et al. (2009). Modeling multiple ecosystem services, biodiversity conservation, commodity production, and tradeoffs at landscape scales. Frontiers in Ecology and the Environment, 7, 4–11.
Newport, F. (2010). Americans’ global warming concerns continue to drop. Retrieved March 15, 2010, from http://www.gallup.com/poll/126560/americans-global-warming-concerns-continue-drop.aspx.
O’Sullivan, R. (2008). Reducing emissions from deforestation in developing countries. In C. Streck, R. O’Sullivan, T. Janson-Smith, & R. Tarasofsky (Eds.), Climate change and forests: Emerging policy and market opportunities (pp. 179–190). London: Chatham House.
Oppenheimer, M., O’Neill, B. C., & Webster, M. (2008). Negative learning. Climate Change, 89, 155–172.
Ostrom, V. (1999). Polycentricity—Part 1. In M. McGinnis (Ed.), Polycentricity and local public economies: Readings from the workshop in political theory and policy analysis (pp. 52–74). Ann Arbor: University of Michigan Press.
Ostrom, V. (2008a). The intellectual crisis in american public administration (3rd ed.). Tuscaloosa: University of Alabama Press.
Ostrom, V. (2008b). The political theory of a compound republic: Designing the American experiment (3rd ed.). Lanham, MD: Lexington Books.
Ostrom, E., & Nagendra, H. (2006). Insights on linking forests, trees, and people from the air, on the ground, and in the laboratory. PNAS, 103, 19224–19231.
Ostrom, V., Tiebout, C. M., & Warren, R. (1961). The organization of government in metropolitan areas: A theoretical inquiry. The American Political Science Review, 55, 831–842.
Ostrom, E., Parks, R. B., & Whitaker, G. P. (1978). Patterns of metropolitan policing. Cambridge, MA: Ballinger.
Parks, R. B., & Ostrom, E. (1999). Complex models of urban service systems. In M. McGinnis (Ed.), Polycentricity and local public economies: Readings from the workshop in political theory and policy analysis (pp. 355–380). Ann Arbor: University of Michigan Press.
Peterson, J. E., Shunturov, V., Janda, K., Platt, G., & Weinberger, K. (2007). Dormitory residents reduce electricity consumption when exposed to real-time visual feedback and incentives. International Journal of Sustainability in Higher Education, 8, 16–33.
Pope, C. A., Ezzati, M., & Dockery, D. W. (2009). Fine-particulate air pollution and life expectancy in the United States. The New England Journal of Medicine, 360, 376–386.
Posner, E. A., & Sunstein, C. (2008). Justice and climate change. Discussion Paper 08–04. Cambridge, MA: Harvard University Project on International Climate Agreements.
Pritchett, L., & Woolcock, M. (2003). Solutions when the solution is the problem: Arraying the disarray in development. World Development, 35, 435–461.
Ramaswami, A., Hillman, T., Janson, B., Reiner, M., & Thomas, G. (2008). A demand-centered, hybrid life-cycle methodology for city-scale greenhouse gas inventories. Environment Science & Technology, 42, 6455–6461.
Rezai, A., Foley, D. K., & Taylor, L. (2010). Global warming and economic externalities. Economic Theory.
Sandler, T. (2004). Global collective action. Cambridge: Cambridge University Press.
Sato, S. (2010). Japan’s solar panel sales rise to record on subsidy. Retrieved April 21, 2010, from http://www.bloomberg.com/apps/news?pid=20601072&sid=avbxkfyJQgGQ.
Schelling, T. C. (2009). Climate change: The uncertainties, the certainties, and what they imply about action. The Economists’ Voice, 4. Retrieved February 20, 2009, from http://www.bepress.com/ev/vol4/iss3/art3/.
Schreurs, M. A. (2008). From the bottom up: Local and subnational climate change politics. Journal of Environment & Development, 17, 343–355.
Schultz, P., Nolan, J., Cialdini, R., et al. (2007). The constructive, destructive, and reconstructive power of social norms. Psychological Science, 18, 429–434.
Sovacool, B. K., & Brown, M. A. (2009). Addressing climate change: Global and local? In F. P. Sioshansi (Ed.), Generating electricity in a carbon constrained world. New York: Elsevier.
Stavins, R. (1997). Policy instruments for climate change: How can national governments address a global problem? University of Chicago Legal Forum, vol. 1997: Rethinking Environmental Protection for the 21st Century (pp. 293–329).
Stern, N. (2007). The economics of climate change: The stern review. Cambridge: Cambridge University Press (2007).
Streck, C., O’Sullivan, R., Janson-Smith, T., & Tarosofsky, R. (2008). Climate change and forests: Emerging policy and market opportunities. London: Chatham House.
United Nations. (1982). Final act of the third conference on the law of the seas. Montenegro Bay, Jamaica: United Nations (1982).
U.S. Conference of Mayors’ Climate Protection Agreement. (2010). Retrieved May 1, 2010, from http://www.usmayors.org/climateprotection/revised/.
Vidal, J. (2008). Pay indigenous people to protect rainforests, conservation groups urge. The Guardian. Retrieved October 23, 2008, from http://www.guardian.co.uk/environment/2008/oct/17/forests-endangeredhabitats.
Walters, C. J. (1986). Adaptive management of renewable resources. New York: Macmillan.
Wara, M. (2007). Is the global carbon market working? Nature, 445, 595–596.
Wara, M., & Victor, D. G. (2008). A realistic policy on international carbon offsets. Working Paper no. 74. Stanford: Stanford University Program on Energy and Sustainable Development.
Wiener, J. B. (2007). Think globally, act globally: The limits of local climate policies. The University of Pennsylvania Law Review, 155, 1961–1979.
Williamson, O. E. (1975). Markets and hierarchies: Analysis and antitrust implications. New York: Free Press.
Williamson, O. E. (1985). The economic institutions of capitalism: Firms, markets, relational contracting. New York: Free Press.
Williamson, O. E. (2000). The new institutional economics: Take stock, looking ahead. The Journal of Economic Literature, 38, 593–613.
Wilson, J. (2002). Scientific uncertainty, complex systems, and the design of common-pool institutions. In E. Ostrom, T. Dietz, N. Dolšak, P. Stern, S. Stonich, E. Weber (Eds.), National Research Council, Committee on the Human Dimensions of Global Change. The Drama of the Commons (pp. 327–359). Washington, DC: National Academy Press (2002).
Wilson, D. (2006). Predictions about European commons. The Common Property Resource Digest, 77, 7–8.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Ostrom, E. (2016). Nested Externalities and Polycentric Institutions: Must We Wait for Global Solutions to Climate Change Before Taking Actions at Other Scales?. In: Chichilnisky, G., Rezai, A. (eds) The Economics of the Global Environment. Studies in Economic Theory, vol 29. Springer, Cham. https://doi.org/10.1007/978-3-319-31943-8_13
Download citation
DOI: https://doi.org/10.1007/978-3-319-31943-8_13
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-31941-4
Online ISBN: 978-3-319-31943-8
eBook Packages: Economics and FinanceEconomics and Finance (R0)