“…The debate on an environmental race to the bottom first arose in the USA in the early 1970s, as the federal government began to displace the several states in environmental enforcement (Stein, 1971; Peltzman and Tideman, 1973). It continues to this day; for overviews and detailed discussions, see Revesz (1992, 1996), Wellisch (1995), Esty (1996), Oates and Schwab (1996), Anderson and Hill (1997), Engel (1997), Farber (1997), Oates (2002), Levinson (2003), Oates and Portney (2003), Kunce and Shogren (2005) and Dalmazzone (2006). It might appear that the possible existence of a race to the bottom in environmental quality is a factor generally in favor of a more centralized assignment of emissions control.…”