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 equity
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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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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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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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
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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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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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The Platform Opens a Window: An Unambiguous Consequence of the Durban Climate Talks
In my previous 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, addressing … Continue reading
Posted in Climate Change Policy, Energy Policy, Environmental Economics, Environmental Policy, Natural Resource Policy, Politics, Positive Political Economy
Tagged Brazil, Cancun Agreements, China, common but differentiated responsibilities, COP-15, COP-16, COP-17, Copenhagen, Copenhagen Accord, cost-effectiveness, distributional equity, Durban, Durban Platform, environmental politics, global climate policy, India, Kyoto Protocol, Mexico, Obama Administration, South Africa
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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
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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
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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
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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
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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
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Defining Success for Climate Negotiations in Cancun
International climate negotiations will continue in Cancun, Mexico, during the first two weeks of December, 2010. These will be the Sixteenth Conference of the Parties (COP-16) of the United Nations Framework Convention on Climate Change (UNFCCC). The key challenge is … Continue reading
Posted in Climate Change Policy, Energy Policy, Environmental Economics, Environmental Policy, Natural Resource Policy, Positive Political Economy
Tagged Australia, Brazil, Cancun, China, COP-15, COP-16, Copenhagen, Copenhagen Accord, cost-effectiveness, distributional equity, efficiency, environmental politics, European Union, free rider problem, George W. Bush, global climate policy, India, Japan, Korea, linkage of cap-and-trade systems, Major Economies Forum, market failure, market-based environmental policies, Mexico, New Zealand, Obama Administration, South Africa, Waxman-Markey legislation
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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
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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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Another Copenhagen Outcome: Serious Questions About the Best Institutional Path Forward
Whether you like it or not, for the time being the most important product of the December meeting in Copenhagen of the Fifteenth Conference of the Parties (COP-15) of the United Nations Framework Convention on Climate Change (UNFCCC) is the … Continue reading
Posted in Climate Change Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged Australia, Brazil, China, COP-15, Copenhagen, Copenhagen Accord, distributional equity, environmental politics, European Union, free rider problem, g-20, g-77, global climate policy, India, institutions, Japan, Korea, Major Economies Forum, Mexico, Obama Administration, South Africa, UNFCCC
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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
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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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Defining Success for Climate Negotiations in Copenhagen
The fact that President Obama has decided to attend the United Nations climate change negotiations in Copenhagen at the end of the two-week meetings on December 18th, rather than during the previous week on his way to Oslo to receive … Continue reading
Posted in Climate Change Policy, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged Australia, Boston Globe, Brazil, cap-and-trade, capital stock, China, Copenhagen, cost-effectiveness, distributional equity, endogeneity, environmental politics, European Union, Financial Times, global climate policy, India, institutions, Korea, Kyoto Protocol, linkage of cap-and-trade systems, market-based environmental policies, Mexico, Nobel Peace Prize, Obama Administration, path dependence, portfolio of domestic commitments, South Africa, U.S. House of Representatives, U.S. Senate, Waxman-Markey legislation
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Approaching Copenhagen with a Portfolio of Domestic Commitments
As we approach the beginning of the Fifteenth Conference of the Parties of the United Nations Framework Convention on Climate Change (UNFCCC) in Copenhagen in December, international negotiations are focused on developing a climate policy framework for the post-2012 period, … Continue reading
Posted in Climate Change Policy, Energy Policy, Environmental Economics, Environmental Policy, Positive Political Economy
Tagged and verification (MRV), Annex I, Australia, Bali Action Plan, cap-and-trade, China, climate accession deals, common but differentiated responsibilities, Copenhagen, cost-effectiveness, distributional equity, environmental politics, Europe, European Union, executive agreement, G8(+5), global climate policy, Harvard Project on International Climate Agreements, India, Japan, linkage of cap-and-trade systems, Major Economies Forum, market-based environmental policies, measurement, Nationally Appropriate Mitigation Actions (NAMAs), Obama Administration, regulation, reporting, revenue-neutral taxes, treaty law, U.S. House of Representatives, U.S. Senate, UNFCCC, 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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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
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Three Pillars of a New Climate Pact
THE climate change summit at the United Nations on Tuesday, September 22nd, is aimed to build momentum for the 15th Conference of the Parties to the UN Framework Convention on Climate Change in Copenhagen in December, where nations will continue … Continue reading
Posted in Climate Change Policy, Environmental Economics, Environmental Policy
Tagged Australia, Canada, cap-and-trade, carbon leakage, China, climate agreements, COP-15, cost-effectiveness, distributional equity, European Union, externalities, free rider problem, G20, global climate policy, growth targets, international climate policy architecture, Japan, Kyoto Protocol, linkage of cap-and-trade systems, market-based environmental policies, New Zealand, Obama Administration, U.S. House of Representatives, U.S. Senate, United Nations, 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
45 Comments
Straight Talk about Corporate Social Responsibility
Critical thinking about “corporate social responsibility” (CSR) is needed, because there are few topics where discussions feature greater ratios of heat to light. With this in mind, two of my Harvard colleagues – law professor Bruce Hay and business school … Continue reading
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
Using Markets to Make Fisheries Sustainable
Around the world, over-fishing is leading to severe depletion of valuable fisheries. This is as true in U.S. coastal waters as it is in many other parts of the world. In New England waters, for example, after two decades of … Continue reading
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
Misconceptions About Water Pricing
Throughout the United States, water management has been approached primarily as an engineering problem, rather than an economic one. Water supply managers are reluctant to use price increases as water conservation tools, instead relying on non-price demand management techniques, such … Continue reading
Green Jobs
The January 12, 2009 issue of The New Yorker includes a well-written and in some ways inspiring article by Elizabeth Kolbert, profiling Van Jones, founder and president of Green for All. In the article, “Greening the Ghetto: Can a Remedy … Continue reading
As Reservoirs Fall, Prices Should Rise
Last week, California Governor Arnold Schwarzenegger declared a state of emergency and warned of possible mandatory water rationing as the state struggled through its third consecutive year of drought. This well-intentioned response to the latest water crisis should not come … 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
Opportunity for a Defining Moment
The inauguration of Barack Obama as the forty-fourth President of the United States is a defining moment in American history. For most Americans and countless others around the world, this is an inspiring political transition. The question we must face, … Continue reading