Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236386 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14355
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In the absence of first-best climate policy, we demonstrate that existing government institutions and policy established for reasons unrelated to climate change may induce climate adaptation. We examine the impact of temperature on ambient ozone concentration in the United States from 1980-2013, and the role of institution-induced adaptation. Ozone is formed under warm temperatures, and regulated by the Clean Air Act institution. Adaptation in counties out of attainment with air quality standards is 107 percent larger than under attainment, implying substantial institution-induced adaptation. Furthermore, local beliefs about climate change appear to reinforce adaptive behavior, suggesting a nontrivial role in second-best climate policy.
Subjects: 
climate change
government institutions and policy
Clean Air Act
institution-induced adaptation
ambient ozone concentration
climate change beliefs
JEL: 
Q53
Q54
Q58
H23
K32
P48
D02
Document Type: 
Working Paper

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