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.
Tag Archives: distributional analysis
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
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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
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Two Notable Events Prompt Examination of an Important Property of Cap-and-Trade
In December of 2010, a group of economists and legal scholars gathered at the University of Chicago to celebrate two notable events. One was the fiftieth anniversary of the publication of Ronald Coase’s “The Problem of Social Cost” (Coase 1960). … Continue reading
Posted in Climate Change Policy, Economic Policy, Environmental Economics, Environmental Policy, Politics, Positive Political Economy
Tagged Arrow and Debreu, cap-and-trade, chlorofluorocarbons (CFCs), Coase Theorem, cost-effectiveness, distributional analysis, distributional equity, efficiency, environmental politics, EU ETS, European Union, global climate policy, Independence Property, Journal of Law and Economics, Kyoto Protocol, market-based environmental policies, Montreal Protocol, Regional Clean Air Incentives Market, regulation, Robert Hahn, Ronald Coase, sulfur dioxide, University of Chicago, Waxman-Markey legislation
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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
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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
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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
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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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Confusion in the Senate Regarding Allowance Allocation?
According to an October 22nd story in Environment & Energy Daily (“Climate: GOP Fence Sitters Voice Concerns Over Allocations” by Darren Samuelson), several key swing-vote Senate Republicans — including Senator Lisa Murkowski, ranking member of the Energy and Natural Resources … Continue reading
Posted in Climate Change Policy, Environmental Economics, Environmental Policy
Tagged Boxer-Kerry legislation, cap-and-trade, cost-effectiveness, distributional analysis, efficiency, environmental politics, global climate policy, Kerry-Boxer legislation, market-based environmental policies, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
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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
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Cap-and-Trade: A Fly in the Ointment? Not Really
For more than two decades, environmental law and regulation was dominated by command-and-control approaches — typically either mandated pollution control technologies or inflexible discharge standards on a smokestack-by-smokestack basis. But in the 1980s, policy makers increasingly explored market-based environmental policy … Continue reading
Posted in Climate Change Policy, Environmental Economics, Environmental Policy
Tagged acid rain, cap-and-trade, cost-effectiveness, distributional analysis, distributional equity, efficiency, environmental politics, global climate policy, market-based environmental policies, regulation, transaction costs, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
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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
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The Wonderful Politics of Cap-and-Trade: A Closer Look at Waxman-Markey
The headline of this post is not meant to be ironic. Despite all the hand-wringing in the press and the blogosphere about a political “give-away” of allowances for the cap-and-trade system in the Waxman-Markey bill voted out of committee … Continue reading
Posted in Climate Change Policy, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged allowance allocation, cap-and-trade, cost incidence, cost-effectiveness, distributional analysis, distributional equity, efficiency, environmental politics, global climate policy, Hamilton Project, import allowance requirement, local distribution companies, market-based environmental policies, Obama Administration, Office of Management and Budget, output-based updating allocation, regulation, Regulatory Impact Analysis, revenue-neutral taxes, Waxman-Markey legislation
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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
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Moving Beyond Vintage-Differentiated Regulation
A common feature of many environmental policies in the United States is vintage-differentiated regulation (VDR), under which standards for regulated units are fixed in terms of the units’ respective dates of entry, with later vintages facing more stringent regulation. In … Continue reading
The Myths of Market Prices and Efficiency
In my two previous posts I described a pair of prevalent myths regarding how economists think about the environment: “the myth of the universal market” – the notion that economists believe that the market solves all problems; and “the myth … Continue reading