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: regulation
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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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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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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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
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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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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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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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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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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
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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
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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
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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
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What’s the Proper Role of Individuals and Institutions in Addressing Climate Change?
This may seem like a trivial question with an obvious answer. But what really is the proper role for individuals and institutions in addressing climate change? An immediate and natural response may be that everyone should do their part. Let’s … Continue reading
Unintended Consequences of Government Policies: The Depletion of America’s Wetlands
Private land-use decisions can be affected dramatically by public investments in highways, waterways, flood control, or other infrastructure. The large movement of jobs from central cities to suburbs in the postwar United States and the ongoing destruction of Amazon rain … Continue reading
Posted in Environmental Economics, Environmental Policy, Forest Policy, Natural Resource Economics, Natural Resource Policy, Water Policy
Tagged benefit-cost analysis, Clean Water Act, common property resources, econometric analysis, economic valuation, environmental politics, externalities, free rider problem, infrastructure, land use, market failure, public goods, regulation, U.S. Army Corps of Engineers, U.S. Soil Conservation Service, wetlands
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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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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
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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
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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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Policies Can Work in Strange Ways
Whether the policy domain is global climate change or local hazardous waste, it’s exceptionally important to understand the interaction between public policies and technological change in order to assess the effects of laws and regulations on environmental performance. Several years … Continue reading
Posted in Climate Change Policy, Corporate Social Responsibility, Environmental Economics, Environmental Policy
Tagged chlorine, chlorofluorocarbons (CFCs), Clean Air Act, Clean Water Act, Cluster Rule, Compensation, Comprehensive Environmental Response Compensation and Liability Act, econometric analysis, environmental politics, externalities, global climate policy, green jobs, hazardous waste, Minamata, Montreal Protocol, pulp and paper, regulation, Resource Conservation and Recovery Act, technological change, Toxics Release Inventory
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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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The New Auto Fuel-Efficiency Standards — Going Beyond the Headlines
On My 19th, 2009, President Obama announced new Federal fuel-efficiency standards for motor-vehicles that would make the current standards — known as Corporate Average Fuel Economy — or CAFE — standards significantly more stringent. These CAFE standards measure compliance as … Continue reading
Posted in Climate Change Policy, Energy Policy, Environmental Policy
Tagged CAFE standards, cost-effectiveness, environmental politics, fuel-efficiency standards, gasoline taxes, global climate policy, green jobs, market-based environmental policies, Obama Administration, rebound effect, regulation, revenue-neutral taxes, vintage differentiated regulation
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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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What Baseball Can Teach Policymakers
With the Major League Baseball season having just begun, I’m reminded of the truism that the best teams win their divisions in the regular season, but the hot teams win in the post-season playoffs. Why the difference? The regular season … Continue reading
Posted in Environmental Economics, Environmental Policy
Tagged baseball, benefit-cost analysis, cost-effectiveness, efficiency, information problems, Monte Carlo analysis, Nonroad Diesel Rule, Obama Administration, Office of Management and Budget, regulation, Regulatory Impact Analysis, uncertainty
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The Making of a Conventional Wisdom
Despite the potential cost-effectiveness of market-based policy instruments, such as pollution taxes and tradable permits, conventional approaches - including design and uniform performance standards – have been the mainstay of U.S. environmental policy since before the first Earth Day in … Continue reading
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 Myth of the Universal Market
Communication among economists, other social scientists, natural scientists, and lawyers is far from perfect. When the topic is the environment, discourse across disciplines is both important and difficult. Economists themselves have likely contributed to some misunderstandings about how they think … Continue reading