Association for Public Policy Analysis & Management

Abstract. Climate change is a global challenge that affects policy agendas across international, national, and local governments.  International agreements to reduce greenhouse gas emissions have been made and reaffirmed through the U.N. Framework Convention on Climate Change (UNFCCC) Conference of the Parties for over two decades.  For federal political systems engaged in this process, meeting these international agreements requires commitments at the national-level and action across sub-national governments. Federalism is a long-standing arrangement in the distribution of power between a central authority (federal government) and the constituent units (subnational governments, such as states or provinces). The influence of federalist governance can support the achievement of international agreements in one of two ways: (1) federal commitments can translate to action at the sub-national level or (2) sub-national governments can choose to take the lead where federal support is lacking. We explore these dynamics in the case of Canada, a federal system that has seen prolonged periods of federal government inaction on emissions reduction; in this national policy void, subnational policy innovation has moved forward on a few fronts, including in energy policy. Policy change focused on energy technology innovation is one approach that can enable transitions to a lower carbon energy system and policies to enable innovation that transcend governance levels. This paper presents an analytical framework to review technology financing by governments and industry across Canadian national and sub-national governments. The analysis identifies subnational policies that support energy technology innovations by comparing regions where emission reductions have been achieved against those that have seen no requisite reductions. This framework helps us understand the role of energy technology innovation in reducing greenhouse gas emissions. Our findings suggest that employing a systematic approach to innovation policy and technology financing encourages coordination across involved actors and supports the achievement of emissions reductions goals. Climate policy and emissions reductions by subnational governments can be promoted in the absence of or under the leadership of national governments. This type of framework supports the development of a coordinated strategy among subnational governments in achieving international goals through cooperative federalism (via subnational policy compacts). We discuss the implications of our findings for the United States, which once again appears to be entering a period of federal inaction on climate policy under the new administration.

References

Jordaan, S. M., E. Romo-Rabago, R. McLeary, L. Reidy, J. Nazari, I. M. Herremans. (presently under review) The Role of Energy Technology Innovation in Reducing Greenhouse Gas Emissions in Canada.