Unpacking EPA’s Decision to Rescind the Endangerment Finding

On February 12th, 2026, the U.S. Environmental Protection Agency (EPA) finalized its rescission of the 2009 Greenhouse Gas Endangerment Finding.  This action by the Trump administration reversed the scientific determination that greenhouse gases (GHGs) threaten public health and welfare, effectively removing the legal basis for federal regulations on GHG emissions from vehicles, power plants, and other sources. This has received a great deal of press coverage, but to really understand the implications, it is helpful to understand the gestation and evolution of the Endangerment Finding.  And for that there is no one better in the world to guide us through the political and legal history, and the path going forward, than my colleague, Jody Freeman, the Archibald Cox Professor of Law at Harvard Law School.  Our conversation is featured in the latest episode of my podcast series, “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.” Listen to our conversation here.

When the Trump administration announced in July 2025 its intention to rescind the Endangerment Finding, it based that upon both legal and scientific grounds, in particular an exceptionally flawed study authored by five rather prominent climate skeptics and published by the U.S. Department of Energy.  Apparently the administration came to realize that the claimed scientific basis for rescission would be challenged successfully in court, and so when the recission was actually finalized a couple of weeks ago, the administration explicitly excluded the scientific grounds (and the DOE study), presumably realizing they would lose in court.  Instead, the recission is being justified on purely legal grounds.  For example, the argument is made that the Clean Air Act “does not authorize the Agency to prescribe emission standards in response to global climate change concerns.”  Also, the claim is made that the 2022 Supreme Court decision striking down the Obama power plant rule prohibits EPA from regulating global pollutants.  These legal arguments mean that future administrations cannot limit GHG emissions without new legislation by Congress.  So, clearly, Professor Freeman is a perfect person to unpack all of this.

I began our conversation by asking about the history of the Endangerment Finding, which Jody Freeman explained emerged from the verdict in the 2007 Massachusetts vs. EPA Supreme Court case in which the court ruled that GHGs are pollutants that could be covered by the Clean Air Act if EPA found that these gases “endanger public health and welfare.”

“The Obama administration took the scientific analysis that EPA had already done, updated it, and made the endangerment finding for greenhouse gases,” she notes.  “The first set of standards was for emissions from new cars and trucks under section 202 of the law. Interestingly, that is the section that the Trump administration now is claiming it does not have the authority under to make this endangerment finding or set these car [fuel efficiency] standards.”

Freeman explains that the Trump administration is also contending that it would be futile to regulate greenhouse gas emissions from vehicles because the emissions from new cars and trucks are a very small fraction of overall emissions.

“This really is a rehash of the losing arguments in Massachusetts versus EPA,” she points out.  “They look slightly different. They’re articulated slightly differently, but the heart of it is the same. So, in my view, they’re really taking another run at the losing side of the argument.”

The administration’s strategy, Freeman suggests, is based on the calculation that today’s Supreme Court will likely be much more sympathetic to their arguments than was the Court as it existed in 2007.

“It’s a risky thing for this administration to now take a run at it, but I speculate that their thinking is, well, we have three justices on the Supreme Court… who were in the dissent in Mass. versus EPA, including the Chief Justice, and all of the members of the majority from Massachusetts versus EPA are gone… and we have a new conservative Supreme Court, maybe we can pick up a couple of other votes and it’s worth taking a run at it,” she says.

Not surprisingly, Freeman finds it difficult to predict how the high court will rule, but she provides several possibilities.

“I can imagine a place where the Supreme Court might land where it doesn’t quite say that EPA lacks authority to regulate global pollution because that would contradict what it said in Mass. versus EPA, but it’s possible they would find something in the language of contribution to rule for the administration. I don’t think that would be the right reading of the law, but I certainly think EPA is hoping for it.”

But either way, Freeman argues, it will likely be several years before a final verdict is rendered.

“Even if this does reach the Supreme Court, it will be quite some time, and it will pretty much run out the clock on the administration,” she says. “So, we’re not going to see any greenhouse gas rules likely from this administration between now and the time they leave office.”

Finally, should the high court eventually rule for the administration, Freeman explains, the federal government would be virtually powerless to regulate emissions.

“That would knock out the Clean Air Act as a source of federal climate regulations because if they can’t make an endangerment finding [applicable] for cars and trucks, then they can’t make an endangerment finding anywhere in the Clean Air Act [in order to] regulate global pollution. So, if the court were to go for that argument, then Congress would need to amend the law to restore EPA’s authority to set greenhouse gas standards.”  Sobering but honest thoughts.

For this and much, much more, I encourage you to listen to this 73rd episode of the Environmental Insights series, with future episodes scheduled to drop each month.  You can find a transcript of our conversation at the website of the Harvard Environmental Economics Program.  Previous episodes have featured conversations with:

  • Gina McCarthy, former Administrator of the U.S. Environmental Protection Agency
  • Nick Stern of the London School of Economics discussing his career, British politics, and efforts to combat climate change
  • Andrei Marcu, founder and executive director of the European Roundtable on Climate Change and Sustainable Transition
  • Paul Watkinson, Chair of the Subsidiary Body for Scientific and Technological Advice (SBSTA) within the United Nations Framework Convention on Climate Change
  • Jos Delbekeprofessor at the European University Institute in Florence and at the KU Leuven in Belgium, and formerly Director-General of the European Commission’s DG Climate Action
  • David Keith, professor at Harvard and a leading authority on geoengineering
  • Joe Aldy, professor of the practice of public policy at Harvard Kennedy School, with considerable experience working on climate change policy issues in the U.S. government
  • Scott Barrett,  professor of natural resource economics at Columbia University, and an authority on infectious disease policy
  • Rebecca Henderson, John and Natty McArthur University Professor at Harvard University, and founding co-director of the Business and Environment Initiative at Harvard Business School.
  • Sue Biniaz, who was the lead climate lawyer and a lead climate negotiator for the United States from 1989 until early 2017.
  • Richard Schmalensee, the Howard W. Johnson Professor of Management, and Professor of Economics Emeritus at the Massachusetts Institute of Technology.
  • Kelley Kizier, Associate Vice President for International Climate at the Environmental Defense Fund.
  • David Hone, Chief Climate Change Adviser, Shell International.
  • Vicky Bailey, 30 years of experience in corporate and government positions in the energy sector. 
  • David Victor, professor of international relations at the University of California, San Diego.
  • Lisa Friedman, reporter on the climate desk at the The New York Times.
  • Coral Davenport, who covers energy and environmental policy for The New York Times from Washington.
  • Spencer Dale, BP Group Chief Economist.
  • Richard Revesz, professor at the NYU School of Law.
  • Daniel Esty, Hillhouse Professor of Environment and Law at Yale University. 
  • William Hogan, Raymond Plank Research Professor of Global Energy Policy at Harvard.
  • Jody Freeman, Archibald Cox Professor of Law at Harvard Law School.
  • John Graham, Dean Emeritus, Paul O’Neill School of Public and Environmental Affairs, Indiana University.
  • Gernot Wagner, Clinical Associate Professor at New York University.
  • John Holdren, Research Professor, Harvard Kennedy School.
  • Larry Goulder, Shuzo Nishihara Professor of Environmental and Resource Economics, Stanford University.
  • Suzi Kerr, Chief Economist, Environmental Defense Fund.
  • Sheila Olmstead, Professor of Public Affairs, LBJ School of Public Affairs, University of Texas, Austin.
  • Robert Pindyck, Bank of Tokyo-Mitsubishi Professor of Economics and Finance, MIT Sloan School of Management.
  • Gilbert Metcalf, Professor of Economics, Tufts University.
  • Navroz Dubash, Professor, Centre for Policy Research, New Delhi.
  • Paul Joskow, Elizabeth and James Killian Professor of Economics emeritus, MIT.
  • Maureen Cropper, Distinguished University Professor, University of Maryland.
  • Orley Ashenfelter, the Joseph Douglas Green 1895 Professor of Economics, Princeton University.
  • Jonathan Wiener, the William and Thomas Perkins Professor of Law, Duke Law School.
  • Lori Bennear, the Juli Plant Grainger Associate Professor of Energy Economics and Policy, Nicholas School of the Environment, Duke University.
  • Daniel Yergin, founder of Cambridge Energy Research Associates, and now Vice Chair of S&P Global.
  • Jeffrey Holmstead, who leads the Environmental Strategies Group at Bracewell in Washington, DC.
  • Daniel Jacob, Vasco McCoy Family Professor of Atmospheric Chemistry & Environmental Engineering at Harvard.
  • Michael Greenstone, Milton Friedman Distinguished Service Professor of Economics, University of Chicago.
  • Billy Pizer, Vice President for Research & Policy Engagement, Resources for the Future. 
  • Daniel Bodansky, Regents’ Professor, Sandra Day O’Connor College of Law, Arizona State University.
  • Catherine Wolfram, Cora Jane Flood Professor of Business Administration, Haas School of Business, University of California, Berkeley, currently on leave at the Harvard Kennedy School.
  • James Stock, Harold Hitchings Burbank Professor of Political Economy, Harvard University.
  • Mary Nichols, long-time leader in California, U.S., and international climate change policy.
  • Geoffrey Heal, Donald Waite III Professor of Social Enterprise, Columbia Business School.
  • Kathleen Segerson, Board of Trustees Distinguished Professor of Economics, University of Connecticut.
  • Meredith Fowlie, Professor of Agricultural and Resource Economics, U.C. Berkeley. 
  • Karen Palmer, Senior Fellow, Resources for the Future.
  • Severin Borenstein, Professor of the Graduate School, Haas School of Business, University of California, Berkeley.
  • Michael Toffel, Senator John Heinz Professor of Environmental Management and Professor of Business Administration, Harvard Business School.
  • Emma Rothschild, Jeremy and Jane Knowles Professor of History, Harvard University.
  • Nathaniel Keohane, President, C2ES.
  • Amy Harder, Executive Editor, Cypher News.
  • Richard Zeckhauser, Frank Ramsey Professor of Political Economy, Harvard Kennedy School.
  • Kimberly (Kim) Clausing, School of Law, University of California at Los Angeles
  • Hunt Allcott, Professor of Global Environmental Policy, Stanford Doerr School of Sustainability.
  • Meghan O’Sullivan, Jeane Kirkpatrick Professor of the Practice of International Affairs at Harvard Kennedy School.
  • Robert Lawrence, Albert Williams Professor of International Trade and Investment, Harvard Kennedy School.
  • Charles Taylor, Assistant Professor of Public Policy, Harvard Kennedy School.
  • Wolfram Schlenker, Ray Goldberg Professor of the Global Food System, Harvard Kennedy School.
  • Karen Fisher-Vanden, Professor of Environmental & Resource Economics, Pennsylvania State University
  • Max Bearak, climate and energy reporter, New York Times
  • Vijay Vaitheeswaran, global energy and climate innovation editor, The Economist
  • Joseph Aldy, Teresa & John Heinz Professor of the Practice of Environmental Policy, Harvard Kennedy School
  • Nicholas Burns, Roy and Barbara Goodman Family Professor of the Practice of Diplomacy and International Relations, Harvard Kennedy School
  • Elaine Buckberg, Senior Fellow, Salata Institute for Climate and Sustainability, Harvard University
  • Anna Russo, Junior Fellow, Harvard University
  • John Podesta, Advisor to Presidents Clinton, Obama, and Biden
  • Catherine Wolfram, William Barton Rogers Professor of Energy Economics, MIT Sloan School of Management

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunes, Pocket Casts, Spotify, and Stitcher.

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The Social Cost of Carbon Redux

We find ourselves in a period when concerns about climate change impacts are increasing (see the report just released of the IPCC’s AR6 WG3 Summary for Policymakers), federal climate legislation seems less and less likely, the U.S. Supreme Court may significantly restrict EPA’s authority to regulate greenhouse gases, and other U.S. courts are at least temporarily preventing the administration from using the Social Cost of Carbon.  In the midst of all this, it’s worthwhile thinking critically and dispassionately about the benefits and costs of environmental protection.  There is no one better to reflect on this than my podcast guest, Maureen Cropper, Distinguished University Professor of Economics at the University of Maryland.  You can listen to our conversation in the latest episode of my podcast, “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.”  Our full conversation is here.

In these podcasts, I converse with leading experts from academia, government, industry, and NGOs.  Maureen Cropper fits well in this group.  In addition to her professorship at the University of Maryland, she is a Senior Fellow with Resources for the Future, a (very active) member of the National Academy of Sciences, and a Fellow of the Association of Environmental and Resource Economists

She has long focused her research on valuing environmental amenities (particularly in regard to environmental health effects), the discounting of future health benefits, and the tradeoffs implicit in environmental regulations. Her current research focuses primarily on the costs and benefits of air pollution control efforts in India, and on the valuation of climate amenities.  

When I ask Maureen Cropper to assess the Biden Administration’s environmental and resource policies, she remarks that it seems to be heading in the right direction, at least on one important component.

“I do think that there has been momentum to further the cause of estimating and using the social cost of carbon. After all, on Biden’s first day [in office], he actually reinstated the Interagency Working Group, which had been disbanded by President Trump and … announced that we were going to make progress in revising the social cost of carbon. I do think that a lot has been done along those lines,” she says. “Although … what we see and how it’s used may be affected, is likely to be affected … by recent [court] rulings.”

Current estimates of the social cost of carbon range between 50 and 60 dollars a ton, but Cropper notes that it could be increased to 100 dollars per ton or more if the discount rate is changed from three percent to two percent.

She goes on to express some doubt about the effectiveness of current U.S. climate policies, noting that she is “not particularly optimistic about the rate at which greenhouse gas emissions are being reduced.” But she also expresses her admiration for recent youth movements of climate activism.

“I actually do see the attitudes that they have which really are very encouraging to me in terms of what’s happening in the country as a whole,” she says.  “It does seem like a very good indicator perhaps, or bellwether one hopes of things to come.”

For this and much more, I hope you will listen to my compete conversation with Maureen Cropper, the 33rd episode in the Environmental Insights series, with future episodes scheduled to drop each month.  You can find a transcript of our conversation at the website of the Harvard Environmental Economics Program.  Previous episodes have featured conversations with:

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunes, Pocket Casts, Spotify, and Stitcher.

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Bringing Ambition and Pragmatism to Climate Change Policy

In the world of environmental policy, it is frequently the case that pragmatism and effectiveness are framed as being at odds with passion and ambition.  Even more so, in the realm of climate change, it is the rare individual who can successfully merge ambition and pragmatism in the pursuit of intelligent and effective public policy.  Richard Schmalensee, my guest in the newest episode of our podcast, “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” is just such a person.

In my conversation with Dick Schmalensee, the Howard W. Johnson Professor of Management, and Professor of Economics Emeritus at the Massachusetts Institute of Technology, he reflects on his many years working on environmental policy in public service and in academia.  Abundant insights arise, including important lessons for current climate policy deliberations in the United States, Europe, China, and other countries.

Professor Schmalensee was Dean of the MIT Sloan School of Management for 10 years, and Director of the MIT Center for Energy and Environmental Policy Research for 12 years.  Before and during those years, his research and teaching were in multiple areas of application of industrial organization, including antitrust, regulatory, energy, and environmental policies.

He is a Fellow of the Econometric Society and the American Academy of Arts and Sciences, a Director of the National Bureau of Economic Research, and Chairman Emeritus of the Board of Directors of Resources for the Future.  And I’m pleased to say that Dick is also an Associate Scholar of the Harvard Environmental Economics Program, and in recent years, has been my frequent co-author (for example, here, here, and here).

In addition to all of this, during a leave of absence from MIT, he served as a Member of the President’s Council of Economic Advisers in the George H.W. Bush administration.

Professor Schmalensee in his home study in Boston, 2020

In this latest Podcast episode, our conversation begins with Dick’s upbringing in a small town in southern Illinois, his move east to college and graduate school at MIT, his dissertation research, and the professional path that took him after receipt of his Ph.D. degree, first to California, and then back east to MIT’s Sloan School of Management.  We turn to his career in regulatory economics and policy – both his scholarly research and his close involvement in policy development and implementation, where he was “in the words of ‘Hamilton,” in the room where it happened.” 

Speaking at the Harvard Kennedy School, 2020

You won’t be surprised that we take time to focus on:  the pathbreaking cap-and-trade program launched by the Clean Air Act Amendments of 1990; and political changes in the United States that have moved environmental policy from being a truly bipartisan issue to a partisan one in today’s highly polarized politics.  Much of our conversation is about the current state of climate change policy – and policy research – both domestically and globally.

Delivering Keynote Address at the Toulouse School of Economics, 2017

Throughout the interview, Dick is at home in his disarming style of candid conversation, with no punches pulled.  He terms current U.S. climate change policy “a disaster,” saying it was a mistake “walking away from Paris, walking away from any sense that it’s important that we deal with our emissions and indeed walking away from the potential federal role in helping states and localities adapt to change.”

All of this and more is found in the newest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.” Listen to this latest discussion here, where you can also find a complete transcript of our conversation.

My conversation with Dick Schmalensee is the eleventh episode in the Environmental Insights series.  Previous episodes have featured conversations with:

 “Environmental Insights” is hosted on SoundCloud, and is also available on iTunes, Pocket Casts, Spotify, and Stitcher.

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