What are "spillover effects" in federalism?

"Spillover effects" in federalism refer to situations where actions taken in one jurisdiction influence or impact other jurisdictions, leading to broader regional or national policy implications. This concept highlights the interconnectedness of various levels of government and how decisions made at one level can have consequences beyond their immediate area.

For instance, if a state implements a new environmental regulation, the effects of that policy may extend to neighboring states or even at the national level, particularly if the environment in question is shared. This interdependency can complicate governance, as local or state actions may require coordination with surrounding jurisdictions to ensure effective policy implementation and to address any unintended consequences.

This understanding of spillover effects is crucial in the context of federalism, as it demonstrates the dynamic nature of governance where different levels of government must navigate the impacts of each other's policies.