About the Author
Robert N. Stavins is the Albert Pratt Professor of Business and Government, Director of the Harvard Environmental Economics Program, and Chairman of the Environment and Natural Resources Faculty Group.
Category Archives: Energy Economics
Can There Be a Positive Prognosis for Climate Negotiations?
I’m writing this brief essay on board my flight to the USA from Europe (where I participated in a workshop at the Center for European Economic Research (ZEW) in Mannheim, Germany). It was an interesting event, the substance of which … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged AB 32, Brazil, California, cap-and-trade, China, distributional equity, environmental politics, European Union, global climate policy, India, Kyoto Protocol, market-based environmental policies, Mexico, Obama Administration, South Africa
5 Comments
The Warsaw Climate Negotiations, and Reason for Cautious Optimism
The Nineteenth Conference of the Parties (COP-19) of the United Nations Framework Convention on Climate Change (UNFCCC) came to a close in Warsaw, Poland, on Saturday, November 23rd, after what has become the norm – several all-night sessions culminating in … Continue reading
Posted in Climate Change Policy, Economic Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged AB 32, Brazil, California, cap-and-trade, China, COP-15, COP-16, COP-19, Copenhagen, cost-effectiveness, distributional analysis, distributional equity, efficiency, environmental politics, European Union, free rider problem, global climate policy, India, Korea, Kyoto Protocol, linkage of cap-and-trade systems, Major Economies Forum, market-based environmental policies, Mexico, Obama Administration, South Africa, Warsaw. Poland
7 Comments
Climate Change, Public Policy, and the University
Over the past year or more, across the United States, there has been a groundswell of student activism pressing colleges and universities to divest their holdings in fossil fuel companies from their investment portfolios. On October 3, 2013, after many … Continue reading
Posted in Climate Change Policy, Corporate Social Responsibility, Economic Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged cap-and-trade, climate change policy, cost-effectiveness, efficiency, environmental politics, free rider problem, global climate policy, Harvard University, market failure, market-based environmental policies
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Economics and Politics in California: Cap-and-Trade Allowance Allocation and Trade Exposure
In my previous essay at this blog – The Importance of Getting it Right in California – I wrote about the precedents and lessons that California’s Global Warming Solutions Act (AB 32) and its greenhouse gas (GHG) cap-and-trade system will … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged AB 32, allowance allocation, California, cap-and-trade, cost-effectiveness, distributional analysis, distributional equity, economic valuation, efficiency, environmental politics, European Union, externalities, global climate policy, market failure, market-based environmental policies, output-based updating allocation, revenue-neutral taxes, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
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The Importance of Getting it Right in California
Why should sub-national climate policies exist? In the case of California’s Global Warming Solutions Act (AB 32), the answer flows directly from the very nature of the problem — global climate change, the ultimate global commons problem. The Standard Theory … Continue reading
Posted in Climate Change Policy, Economic Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged AB 32, cap-and-trade, cost-effectiveness, efficiency, global climate policy, linkage of cap-and-trade systems, market failure, market-based environmental policies, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
8 Comments
Thinking About the Energy-Efficiency Gap
Adoption of energy-efficient technologies could reap both private and social rewards, in the form of economic, environmental, and other social benefits from reduced energy consumption. Social benefits include improvements in air quality, reduced greenhouse-gas emissions, and increased energy security. In … Continue reading
Posted in Climate Change Policy, Corporate Social Responsibility, Economic Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged average-cost pricing of electricity, bounded rationality, capital market failures, diffusion, discount rate, Duke University, efficiency, energy efficiency, energy efficiency gap, energy paradox, externalities, global climate policy, heuristic decision making, inattentiveness, information problems, innovation, invention, myopia, option value, principal-agent problem, prospect theory, public goods, R&D, regulation, Richard Newell, salience, Sloan Foundation, spillovers, technological change, technological diffusion, technology innovation, unmesured costs
3 Comments
On the Origins of Research
In response to my last essay at this web site, “On Becoming an Environmental Economist,” several readers suggested that someday I should write about the origins of my various research initiatives over the past 25 years. Today, I’m doing that … Continue reading
Posted in Climate Change Policy, Corporate Social Responsibility, Economic Policy, Economic Stimulus Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Fisheries Policy, Forest Policy, Health Policy, Natural Resource Economics, Natural Resource Policy, Politics, Positive Political Economy, Water Policy, Wine Economics
Tagged benefit-cost analysis, cap-and-trade, common property resources, cost-effectiveness, distributional analysis, distributional equity, economic valuation, efficiency, environmental politics, externalities, free rider problem, global climate policy, Kyoto Protocol, linkage of cap-and-trade systems, market failure, market-based environmental policies, regulation, revenue-neutral taxes
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On Becoming an Environmental Economist
My essay this month represents a departure from my standard blog posts about a contemporary environmental policy issue. Rather, it is of a more personal nature, and stems from the fact that the second volume of my collected papers has … Continue reading
Posted in Climate Change Policy, Corporate Social Responsibility, Economic Policy, Economic Stimulus Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Fisheries Policy, Forest Policy, Health Policy, Natural Resource Economics, Natural Resource Policy, Politics, Positive Political Economy, Water Policy, Wine Economics
Tagged benefit-cost analysis, cap-and-trade, common property resources, cost-effectiveness, distributional analysis, distributional equity, economic valuation, efficiency, environmental politics, free rider problem, global climate policy, information problems, Kyoto Protocol, linkage of cap-and-trade systems, market failure, market-based environmental policies, public goods, regulation, revenue-neutral taxes
2 Comments
Reflections from Cambridge on the Climate Talks in Doha
Ever since I returned – some two weeks ago – from Doha, Qatar, the site of the Eighteenth Conference of the Parties (COP-18) of the United Nations Framework Convention on Climate Change (UNFCCC), I have planned to offer some commentary … Continue reading
Posted in Climate Change Policy, Economic Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged California, cap-and-trade, China, COP-18, cost-effectiveness, distributional equity, Doha, Doha Gateway, India, Japan, Korea, Kyoto Protocol, linkage of cap-and-trade systems, Major Economies Forum, market failure, market-based environmental policies, Mexico, New Zealand, Obama Administration, Qatar, U.S. House of Representatives, U.S. Senate, Waxman-Markley legislation
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While International Climate Negotiations Continue, the World’s Ninth Largest Economy Takes an Important Step Forward
A little more than two weeks ago, while some 195 nations prepared to meet in Doha, Qatar, for the Eighteenth Conference of the Parties (COP-18) of the United Nations Framework Convention on Climate Change (UNFCCC) in an ongoing effort to … Continue reading
Posted in Climate Change Policy, Economic Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged Brazil, California, cap-and-trade, COP-18, cost-effectiveness, Doha, European Union, externalities, global climate policy, India, market-based environmental policies, Qatar
4 Comments
Cap-and-Trade, Carbon Taxes, and My Neighbor’s Lovely Lawn
The recent demise of serious political consideration of an economy-wide U.S. CO2 cap-and-trade system and the even more recent resurgence in interest among policy wonks in a U.S. carbon tax should prompt reflection on where we’ve been, where we are, … Continue reading
Posted in Climate Change Policy, Economic Policy, Economic Stimulus Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Forest Policy, Politics, Positive Political Economy
Tagged cap-and-trade, carbon tax, cost-effectiveness, distributional analysis, distributional equity, efficiency, environmental politics, global climate policy, Kyoto Protocol, linkage of cap-and-trade systems, market-based environmental policies, Mitt Romney, Obama Administration, revenue-neutral taxes, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
12 Comments
Can Market Forces Really be Employed to Address Climate Change?
Debate continues in the United States, Europe, and throughout the world about whether the forces of the marketplace can be harnessed in the interest of environmental protection, in particular, to address the threat of global climate change. In an essay … Continue reading
Posted in Climate Change Policy, Economic Policy, Economic Stimulus Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged California, cap-and-trade, cost-effectiveness, distributional equity, efficiency, environmental politics, European Union, externalities, global climate policy, market failure, market-based environmental policies, Obama Administration, regulation
20 Comments
Low Prices a Problem? Making Sense of Misleading Talk about Cap-and-Trade in Europe and the USA
Some press accounts and various advocates have labeled the Regional Greenhouse Gas Initiative (RGGI) as near “the brink of failure” because of the recent trend of very low auction prices. Likewise, commentators have recently characterized the European Union Emission Trading … Continue reading
Posted in Climate Change Policy, Economic Policy, Economic Stimulus Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged cap-and-trade, cost-effectiveness, efficiency, environmental politics, EU ETS, European Union, global climate policy, green jobs, RGGI
18 Comments
If the Durban Platform Opened a Window, Will India and China Close It?
In my December 12th essay – following the 17th Conference of the Parties (COP-17) of the United Nations Framework Convention on Climate Change (UNFCCC), which adjourned on December 11, 2011 – I offered my assessment of the Durban climate negotiations … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged berlin mandate, China, COP-15, COP-16, Copenhagen, Copenhagen Accord, cost-effectiveness, distributional analysis, distributional equity, Durban Platform, environmental politics, global climate policy, India, international climate agreement, Kyoto Protocol, market-based environmental policies, National Commission on Energy Policy, Obama Administration, South Africa
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Reflections on Twenty Years of Policy Innovation
In 2009, the U.S. Congress considered but ultimately failed to enact legislation aimed at limiting U.S. greenhouse-gas (GHG) emissions. The bill under consideration at that time, the American Clean Energy and Security Act of 2009, was the last in a … Continue reading
Posted in Climate Change Policy, Economic Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged acid rain, cap-and-trade, cost-effectiveness, distributional analysis, efficiency, environmental politics, externalities, global climate policy, market failure, market-based environmental policies, Obama Administration, Office of Management and Budget, regulation, SO2 allowance trading, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
3 Comments
Economics of the Environment
The Sixth Edition of Economics of the Environment: Selected Readings has just been published by W. W. Norton & Company of New York and London. Through five previous editions, Economics of the Environment has served as a valuable supplement to … Continue reading
Posted in Climate Change Policy, Corporate Social Responsibility, Economic Policy, Economic Stimulus Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Fisheries Policy, Forest Policy, Natural Resource Economics, Natural Resource Policy, Politics, Positive Political Economy, Water Policy
Tagged Australia, benefit-cost analysis, Brazil, California, cap-and-trade, China, common property resources, cost-effectiveness, distributional analysis, distributional equity, economic valuation, efficiency, environmental politics, European Union, externalities, free rider problem, global climate policy, import allowance requirement, India, information problems, Japan, Korea, Kyoto Protocol, linkage of cap-and-trade systems, market failure, market-based environmental policies, Mexico, Obama Administration, Office of Management and Budget, public goods, regulation, revenue-neutral taxes, sulfur dioxide
4 Comments
Assessing the Climate Talks — Did Durban Succeed?
The 17th Conference of the Parties (COP-17) of the United Nations Framework Convention on Climate Change (UNFCCC) adjourned on Sunday, a day and a half after its scheduled close, and in the process once again pulled a rabbit out of … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged Australia, Brazil, China, common property resources, COP-17, Copenhagen Accord, cost-effectiveness, distributional equity, Durban, environmental politics, European Union, global climate policy, India, Japan, Korea, Kyoto Protocol, Mexico, New Zealand, Obama Administration, South Africa
15 Comments
Can the Durban Climate Negotiations Succeed?
Two weeks of international climate negotiations begin today in Durban, South Africa. These are the Seventeenth Conference of the Parties (COP-17) of the United Nations Framework Convention on Climate Change (UNFCCC). The key challenge at this point is to maintain … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged Annex I, Australia, Bali, baseball, Cancun, cap-and-trade, COP-15, COP-16, COP-17, Copenhagen, Copenhagen Accord, cost-effectiveness, Durban, environmental politics, European Union, g-20, global climate policy, India, Japan, Korea, Kyoto Protocol, law, linkage of cap-and-trade systems, Major Economies Forum, market-based environmental policies, New Zealand, Obama Administration, Poznan, regulation, South Africa, UNFCCC, United Nations
12 Comments
The Promise and Problems of Pricing Carbon
Friday, October 21st was a significant day for climate change policy worldwide and for the use of market-based approaches to environmental protection, but it went largely unnoticed across the country and around the world, outside, that is, of the State … Continue reading
Posted in Climate Change Policy, Economic Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged AB 32, Alberta, Australia, British Columbia, California, California Air Resources Board, cap-and-trade, carbon taxes, Clean Development, Clean Development Mechanism, Clean Energy Standards, collateral damage, common property resources, cost-effectiveness, distributional equity, efficiency, emission reduction credits, environmental politics, EU ETS, European Union, externalities, fossil fuel subsidies, free rider problem, global climate policy, harmonized carbon taxes, Harvard Kennedy School, international carbon tax, international tradable permits, Japan, Joseph Aldy, Journal of Environment and Development, Kyoto Protocol, leaded gasoline, linkage, linkage of cap-and-trade systems, Maria Damon, market failure, market-based environmental policies, New York Review of Books, New Zealand, North American Climate Initiative, Obama Administration, offsets, Ontario, political polarization, public goods, Quebec, regulation, Resources for the Future, revenue-neutral taxes, sulfur dioxide, tarnishing of cap-and-trade, Thomas Sterner, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation, William Nordhaus
3 Comments
What’s Good for the Goose is Good for the Gander: Rahm’s Doctrine and Mercutio’s Complaint
In a January 2009 article – “The Big Fix” – in the New York Times Magazine, David Leonhardt introduced a frequently-employed political strategy into popular political culture by identifying it with the new President’s Chief of Staff, Rahm Emanuel: Two … Continue reading
Posted in Climate Change Policy, Economic Policy, Economic Stimulus Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged cap-and-trade, cost-effectiveness, David Leonhardt, distributional equity, efficiency, Elizabeth Kolbert, environmental politics, global climate policy, green jobs, Lawrence Summers, market-based environmental policies, Obama Administration, Rahm Emanuel, Rahm's Doctrine, regulation
2 Comments
A Golden Opportunity to Please Conservatives and Liberals Alike
The U.S. Environmental Protection Agency (EPA) has a golden opportunity to opt for a smart, low-cost approach to fulfilling its mandate under a Supreme Court decision to reduce carbon dioxide (CO2) and other greenhouse gas (GHG) emissions linked with global … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged cap-and-trade, carbon dioxide, Clean Air Act, Columbia Law School, credits, endangerment finding, EPA, global climate change, greenhouse gases, Haiku model, market-based instruments, Massachusetts v EPA, Obama, offsets, regulation, Resources for the Future
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Canada’s Step Away From the Kyoto Protocol Can Be a Constructive Step Forward
Canada confirmed this week that it will not take on a target under an extension of the Kyoto Protocol following the completion of the first commitment period, 2008-2012. Given that Canada is likely to miss by a wide margin its … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged Annex I, Australia, Brazil, Canada, Cancun, China, COP-15, COP-16, COP-17, Copenhagen Accord, distributional equity, Durban, environmental politics, European Union, free rider problem, global climate policy, India, Japan, Korea, Kyoto Protocol, Mexico, New Zealand, Obama Administration, Russia, South Africa
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Misguided Objection to Progressive Policy: The EJ Lawsuit Against Implementation of California’s AB 32 Climate Policy
On May 20th, San Francisco Superior Court Judge Ernest Goldsmith ruled that the California Air Resources Board had not adequately explained its choice of a market-based mechanism – a cap-and-trade system — to achieve approximately 20 percent of targeted emissions … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Natural Resource Policy, Positive Political Economy
Tagged AB 32, California, California Air Resources Board, cap-and-trade, cost-effectiveness, distributional equity, environmental justice, environmental politics, global climate policy, Governor Jerry Bronw, green jobs, market-based environmental policies, Mary Nichols, Obama Administration, regulation, sulfur dioxide
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Good News from the Regulatory Front
As each day passes, the upcoming November 2012 general elections produce new stories about potential Republican candidates for President, as well as stories about President Obama’s anticipated re-election campaign. At the same time, the 2012 elections are already affecting Congressional … Continue reading
Posted in Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged benefit-cost analysis, cap-and-trade, cost-effectiveness, distributional analysis, distributional equity, economic valuation, efficiency, environmental politics, EPA, Exelon Corporation, green jobs, linkage of cap-and-trade systems, market failure, market-based environmental policies, Obama Administration, Office of Management and Budget, public goods, recession, regulation, Richard Schmalensee, Tea Party, Transport Rule
2 Comments
A Wave of the Future: International Linkage of National Climate Change Policies
The latest rage in Washington policy discussions these days (that’s relevant to climate change) is renewed interest in renewable electricity standards, this time in the form of so-called “clean energy standards.” I’ve written about this policy approach recently at this … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged Australia, California, cap-and-trade, China, Clean Development Mechanism, Clean Energy Standards, COP-15, Copenhagen Accord, cost-effectiveness, environmental politics, EPRI, European Union, global climate policy, IETA, India, Japan, Korea, linkage of cap-and-trade systems, market-based environmental policies, New Zealand, Obama Administration, regulation, renewable electricity standard, Renewable Portfolio Standard, revenue-neutral taxes, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
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Reflecting on a Century of Progress and Problems
As the first decade of the twenty-first century comes to a close, the problem of the commons is more important to our lives – and more central to economics – than a century ago when the first issue of the … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Fisheries Policy, Natural Resource Economics, Natural Resource Policy, Positive Political Economy
Tagged A. C. Pigou, American Economic Review, benefit-cost analysis, cap-and-trade, China, common property resources, cost-effectiveness, distributional analysis, distributional equity, economic valuation, efficiency, Elinor Ostrom, environmental politics, excludable, externalities, fisheries, free rider problem, Garrett Hardin, global climate policy, India, Indiana University, Katharine Coman, market failure, market-based environmental policies, non-excludable, non-renewable natural resource, open-access resource, private property, public goods, regulation, renewable natural resource, revenue-neutral taxes, rivalness, Ronald Coase, sulfur dioxide, Wellesley College
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Pursuing Real Environmental Justice in California
California Governor Jerry Brown plans to move forward with the implementation of Assembly Bill 32, the Global Warming Solutions Act, under which California seeks to take dramatic steps to reduce its greenhouse gas emissions. Questions have been raised about the … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged AB 32, California, cap-and-trade, carbon monoxide, cost-effectiveness, distributional analysis, distributional equity, environmental justice, environmental politics, global climate policy, Governor Jerry Brown, green jobs, Lawrence Goulder, market-based environmental policies, nitrogen oxides, Obama Administration, particulates, regulation, Sacramento Bee, Stanford University, sulfur dioxide, U.S. Congress
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What Happened (and Why): An Assessment of the Cancun Agreements
The international climate negotiations in Cancun, Mexico, have concluded, and despite the gloom-and-doom predictions that dominated the weeks and months leading up to Cancun, the Sixteenth Conference of the Parties (COP-16) of the United Nations Framework Convention on Climate Change … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Forest Policy, Natural Resource Policy
Tagged ALBA States, Australia, AWG-KP, AWG-LCA, Bolivia, Brazil, Cancun, CDM, China, Christiana Figueres, Climate Technology Center and Network, COP-15, COP-16, COP-17, Copenhagen, Copenhagen Accord, cost-effectiveness, Council on Foreign Relations, Cuba, D, Danish Prime Minister Rasmussen, distributional equity, Durban, environmental politics, European Union, free rider problem, G20, global climate policy, Green Climate Fund, India, Japan, Korea, Major Economies Forum, market-based environmental policies, Mexico, Michael Levi, Nicaragua, Obama Administration, Patricia Espinosa, Pew Center on Global Climate Change, REDD+, South Africa, Sudan, Turkey, Venezuela
21 Comments
Both Are Necessary, But Neither is Sufficient: Carbon-Pricing and Technology R&D Initiatives in a Meaningful National Climate Policy
For many years, there has been a great deal of discussion about carbon-pricing – whether carbon taxes or cap-and-trade – as an essential part of a meaningful national climate policy. It has long been recognized that although carbon-pricing will be … Continue reading
Posted in Climate Change Policy, Economic Stimulus Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Natural Resource Economics, Natural Resource Policy, Positive Political Economy
Tagged ARPA-E, cap-and-trade, carbon pricing, carbon tax, Copenhagen Accord, cost-effectiveness, David Leonhardt, efficiency, environmental politics, externalities, free rider problem, global climate policy, green jobs, information problems, market failure, market-based environmental policies, New York Times, Obama Administration, patents, public goods, R&D, regulation, revenue-neutral taxes, Robert Hahn, technological change, technology innovation, technology R&D policies, U.S. House of Representatives, U.S. Senate, Wall Street Journal, Waxman-Markey legislation
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AB 32, RGGI, and Climate Change: The National Context of State Policies for a Global Commons Problem
Why should anyone be interested in the national context of a state policy? In the case of California’s Global Warming Solutions Act (AB 32), the answer flows directly from the very nature of the problem — global climate change, the … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Natural Resource Policy, Positive Political Economy
Tagged AB 32, Best Available Control Technology, CAFE standards, cap-and-trade, carbon tax, carbon-pricing policy, cost-effectiveness, Dormant Commerce Clause, endangerment finding, environmental politics, free rider problem, global climate policy, Harvard Project on International Climate Agreements, Lawrence Goulder, linkage of cap-and-trade systems, market failure, market-based environmental policies, Massachusetts v EPA, mobile source standards, National Bureau of Economic Research, new source performance standards, New Source Review, NIMBY, Obama Administration, Pavley standards, price collar, principal-agent problem, public goods, public nuisance, regulation, revenue-neutral taxes, RGGI, safety-valve, Stanford University, sulfur dioxide, Supreme Court, tailoring rule, technological change, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation, Western Climate Initiative
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In Defense of Markets
Cap-and-trade has been demonized by conservatives as part of an effective strategy to stop climate legislation from moving forward in the U.S. Congress. As I wrote in my previous blog post (“Beware of Scorched-Earth Strategies in Climate Debates,” July 27, … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged cap-and-trade, cost-effectiveness, efficiency, environmental politics, global climate policy, market failure, market-based environmental policies, regulation, revenue-neutral taxes, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
9 Comments
Beware of Scorched-Earth Strategies in Climate Debates
With the apparent collapse last week of U.S. Senate consideration of a meaningful climate policy, it is important to reflect on what could be a very serious long-term casualty of these acrimonious climate policy debates, namely the demonizing of cap-and-trade … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged cap-and-trade, carbon pricing, Clean Air Interstate Rule, conservatives, cost-effectiveness, Democratic, efficiency, environmental politics, George H.W. Bush, George W. Bush, global climate policy, lead trading, leaded gasoline phasedown, market-based environmental policies, Obama Administration, Reagan Administration, regulation, Republican, revenue-neutral taxes, Richard Schmalensee, SO2 allowance trading, sulfur dioxide, U.S. House of Representatives, Waxman-Markey legislation
17 Comments
Here We Go Again: A Closer Look at the Kerry-Lieberman Cap-and-Trade Proposal
As with the Waxman-Markey bill (H.R. 2454), passed by the House of Representatives last June, there is now some confusing commentary in the press and blogosphere about the allocation of allowances in the new Senate proposal — the American Power … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged American Power Act, cap-and-trade, cost-effectiveness, distributional equity, efficiency, environmental politics, externalities, global climate policy, import allowance requirement, Kerry-Lieberman legislation, market-based environmental policies, Obama Administration, output-based updating allocation, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
9 Comments
Eyes on the Prize: Federal Climate Policy Should Preempt State and Regional Initiatives
In just a few days, Senators John Kerry, Lindsey Graham, and Joe Lieberman will release their much-anticipated proposal for comprehensive climate and energy legislation – the best remaining shot at forging a bipartisan consensus on this issue in 2010. Their … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged Assembly Bill 32, building codes, California, cap-and-trade, carbon dioxide, Copenhagen Accord, cost-effectiveness, environmental politics, free rider problem, global climate policy, greenhouse gases, information problems, market failure, market-based environmental policies, Massachusetts, Obama Administration, preemption, principal-agent problem, regulation, RGGI, Senator Graham, Senator Kerry, Senator Lieberman, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation, zoning
9 Comments
Who Killed Cap-and-Trade?
In a recent article in the New York Times, John Broder asks “Why did cap-and-trade die?” and responds that “it was done in by the weak economy, the Wall Street meltdown, determined industry opposition and its own complexity.” Mr. Broder’s … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy, Water Policy
Tagged Australia, CAFE standards, cap-and-trade, Clean Water Act, CLEAR Act, Climategate, cost-effectiveness, Cuyahoga River, endangerment finding, environmental politics, European Union, Gallup Organization, global climate policy, IPCC, Japan, Kerry-Graham-Lieberman, Love Canal, market-based environmental policies, Massachusetts v EPA, New York Times, New Zealand, Obama Administration, Pew Research Center, political economy, regulation, revenue-neutral taxes, Senator Cantwell, Senator Maria Cantwell, Senator Susan Collins, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
22 Comments
Opportunities and Ironies: Climate Policy in Tokyo, Seoul, Brussels, and Washington
As I write this, I’m on board a flight from Seoul, South Korea, to San Francisco, California, on my way home to Boston, having spent the week of Harvard spring break meeting with senior government officials, academics, and leaders of … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged Australia, cap-and-trade, Clean Air Act Amendments of 1990, COP-15, COP-16, Copenhagen, Copenhagen Accord, cost-effectiveness, distributional equity, environmental politics, G20, global climate policy, Harvard Project on International Climate Agreements, Japan, Korea, Kyoto Protocol, lead trading, Lieberman-Warner Climate Security Act of 2008, Major Economies Forum, McCain-Lieberman legislation, Mexico, New Zealand, Obama Administration, OECD, Seoul, SO2 allowance trading, Tokyo, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
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What Hath Copenhagen Wrought? A Preliminary Assessment of the Copenhagen Accord
After years of preparation, the Fifteenth Conference of the Parties (COP-15) of the United Nations Framework Convention on Climate Change (UNFCCC) commenced on December 7th, 2009, and adjourned some two weeks later on December 19th after a raucous all-night session. … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Forest Policy, Positive Political Economy
Tagged Annex I, Asia-Pacific Economic Conference, Australia, Bolivia, Brazil, Brazilian President da Silva, cap-and-trade, China, common but differentiated responsibilities, Copenhagen, Copenhagen Accord, cost-effectiveness, Cuba, distributional equity, environmental politics, European Union, finance, forestry, free rider problem, global climate policy, import allowance requirement, India, Indian Prime Minister Singh, Japan, Korea, Major Economies Forum, market-based environmental policies, Mexico, Nicaragua, Obama Administration, Portfolio Approach, Premier Wen Jiabo, South Africa, South African President Zuma, Sudan, U.S. House of Representatives, U.S. Senate, UNFCCC, Venezuela, Waxman-Markey legislation
39 Comments
Chaos and Uncertainty in Copenhagen?
Earlier today, I was asked by the Financial Times, “who is responsible for the chaos and uncertainty” at COP-15 in Copenhagen? I’m not sure those are the words I would have chosen to characterize the situation at the climate negotiations … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Natural Resource Policy, Positive Political Economy
Tagged Australia, Bella Center, Brazil, Civil Society, common property resources, Copenhagen, cost-effectiveness, Denmark, distributional equity, efficiency, environmental politics, European Union, Financial Times, free rider problem, global climate policy, India, Japan, market failure, market-based environmental policies, Mexico, New Zealand, Obama Administration, public goods, South Africa, United Nations
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Only Private Sector Can Meet Finance Demands of Developing Countries
Things are getting hot here in Copenhagen. It’s not the weather outside, but the debate taking place inside the Bella Center, home of the 15th Conference of the Parties of the UN Framework Convention on Climate Change. This afternoon, the … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged Brazil, cap-and-trade, carbon finance, China, Copenhagen, cost-effectiveness, distributional equity, efficiency, environmental politics, European Union, global climate policy, India, Korea, market-based environmental policies, Mexico, Obama Administration, South Africa
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Cap-and-Trade versus the Alternatives for U.S. Climate Policy
Let’s credit Senator Lisa Murkowski (R-Alaska) for raising questions in the National Journal about the viability of cap-and-trade versus other approaches for the United States to employ in addressing CO2 and other greenhouse gas emissions linked with global climate change. Senator … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged Australia, CAFE standards, Canada, cap-and-trade, carbon tax, cost-effectiveness, distributional analysis, distributional equity, efficiency, endangerment finding, environmental politics, European Union, global climate policy, Hamilton Project, Japan, leaded gasoline, market-based environmental policies, National Journal, New Source Review, New Zealand, Obama Administration, ozone depleting substances, RECLAIM program, regulation, sulfur dioxide, Supreme Court, technology innovation, U.S. House of Representatives, U.S. Senate, vintage differentiated regulation, Waxman-Markey legislation
21 Comments
Can Countries Cut Carbon Emissions Without Hurting Economic Growth?
In the September 21st issue of the Wall Street Journal, the editors pose the following question: can countries cut carbon emissions without hurting economic growth? In his introductory essay, Michael Totty frames the issues as follows: “There’s little doubt: Cutting … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged American Enterprise Institute, Australia, benefit-cost analysis, Brazil, cap-and-trade, carbon leakage, China, COP-15, Copenhagen, cost-effectiveness, distributional equity, economic growth, environmental politics, European Union, global climate policy, India, Indonesia, linkage of cap-and-trade systems, Major Economies Forum, market-based environmental policies, Mexico, National Commission on Energy Policy, Obama Administration, revenue-neutral taxes, South Africa, South Korea, U.S. Climate Action Partnership, U.S. Congressional Budget Office, U.S. Energy Information Administration, U.S. House of Representatives, UN Intergovernmental Panel on Climate Change (IPCC), Wall Street Journal, Waxman-Markey legislation
6 Comments
Too Good to be True?
Global climate change is a serious environmental threat, and sound public policies are needed to address it effectively and sensibly. There is now significant interest and activity within both the U.S. Administration and the U.S. Congress to develop a meaningful … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged AB 32, benefit-cost analysis, California, cap-and-trade, common property resources, cost-effectiveness, energy efficiency, environmental politics, externalities, free rider problem, global climate policy, market-based environmental policies, regulation, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
5 Comments
What is the Future of U.S. Coal?
Climate concerns have gone mainstream, even in the United States. This has been reflected in the passage by the U.S. House of Representatives of HR 2454, the so-called Waxman-Markey bill, and will soon be reflected in the debates in the … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged cap-and-trade, carbon capture and storage (CCS), environmental politics, global climate policy, market-based environmental policies, regulation, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
7 Comments
Is Benefit-Cost Analysis Helpful for Environmental Regulation?
With the locus of action on Federal climate policy moving this week from the House of Representatives to the Senate, this is a convenient moment to step back from the political fray and reflect on some fundamental questions about U.S. … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Natural Resource Economics, Natural Resource Policy
Tagged benefit-cost analysis, cost-effectiveness, distributional analysis, distributional equity, economic valuation, efficiency, environmental politics, externalities, first welfare theorem, global climate policy, information problems, market failure, monetary values, Obama Administration, Office of Management and Budget, regulation, Regulatory Impact Analysis, U.S. House of Representatives, U.S. Senate, uncertainty, Waxman-Markey legislation
5 Comments
National Climate Change Policy: A Quick Look Back at Waxman-Markey and the Road Ahead
Like any legislation, the Waxman‑Markey bill has its share of flaws, but its cap-and-trade system has medium and long‑term targets for reducing greenhouse gas emissions that are sensible, and the cap‑and‑trade system is — for the most part — well … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged cap-and-trade, common property resources, Congressional Budget Office, cost-effectiveness, environmental politics, global climate policy, import allowance requirement, market failure, market-based environmental policies, Obama Administration, Office of Management and Budget, output-based updating allocation, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
10 Comments
Does economic analysis shortchange the future?
Decisions made today usually have impacts both now and in the future. In the environmental realm, many of the future impacts are benefits, and such future benefits — as well as costs — are typically discounted by economists in their … Continue reading
Posted in Climate Change Policy, Energy Economics, Energy Policy, Environmental Economics, Environmental Policy, Natural Resource Economics
Tagged benefit-cost analysis, discount rate, discounting, distributional analysis, distributional equity, economic valuation, efficiency, global climate policy, monetary values, Office of Management and Budget, regulation, Regulatory Impact Analysis, temporal analysis, time, uncertainty
1 Comment
A Tale of Two Taxes
Whether they are called “revenue enhancements” or “user charges,” fear of the political consequences of taxes restricts debate on energy and environmental policy options in Washington. In a March 7th post on “Green Jobs,” in which I argued that it … Continue reading
Posted in Energy Economics, Energy Policy, Environmental Economics, Environmental Policy
Tagged cost-effectiveness, distributional equity, efficiency, environmental politics, externalities, gasoline taxes, global climate policy, green jobs, market failure, market-based environmental policies, revenue-neutral taxes
9 Comments