I recently testified before a California Senate Select Committee on the state’s climate policies about California’s interactions in the development of policy across the country and internationally. I highlighted the four main points below in my remarks, and you can read the full testimony here. California is not alone. It is joined by many other [...]
When it comes to climate policy, it seems like pessimism is the only thing that rivals greenhouse gas emissions in terms of volume. Last week, the daily atmospheric content of CO2 popped up over 400 parts per million, pushing the stated goal of keeping worldwide temperatures to a 2˚C increase even further from reach. Beneath [...]
Tax exemptions, industry rebates, and border tax adjustments can help protect the competitiveness of industries affected by a carbon tax, but they are not equally efficient at achieving economic and environmental goals. In the latest issue of Resources, Richard Morgenstern, Nathan Richardson, and I examine the issues. Read more here.
Economists have long recognized that linking carbon markets reduces the overall cost of achieving emissions reductions. This economic benefit originates from allowance flows between previously isolated markets that help identify and achieve emissions reductions in the most efficient way. Linking, however, provides non-economic benefits that can be just as important as efficient mitigation. In a [...]
Incrementally aligning policies in distinct carbon markets—linking by degrees—can allow programs to experience immediate benefits of sharing best practices in program design. Together with colleagues at RFF and Yale, we’ve examined the details and prospects for the cap-and-trade programs in California and the Northeast. Read more here.
Just before the new year, the Washington Post ran a surprisingly conflicted editorial on California’s cap-and-trade program for greenhouse gas emissions. It endorsed the use of pricing as the most efficient approach to regulate carbon, suggested that it might be ineffective anyway because California is initially acting alone, and expressed criticism because California is not doing more [...]
RFF experts have developed several background memos on cap-and-trade and carbon tax systems to provide informative overviews and highlight current work, available data, and potential research limitations. Click here to read the rest of this feature.
While International Climate Negotiations Continue, the World’s Ninth Largest Economy Takes an Important Step Forward
This post originally appeared on Robert Stavins’s blog, An Economic View of the Environment. A little more than two weeks ago, while some 195 nations prepared to meet in Doha, Qatar, for the Eighteenth Conference of the Parties (COP-18) of the United Nations Framework Convention on Climate Change (UNFCCC) in an ongoing effort to hammer [...]
Can EPA set up a cap-and-trade system for the transportation sector? If so, can it be forced to do so?The Institute for Policy Integrity, an (excellent) policy research and advocacy outfit affiliated with NYU, today announced it plans to sue EPA, aiming to find out. This is a provocative and interesting move, but I doubt [...]
Results from California’s first auction of greenhouse gas emissions allowances indicate the emissions reductions goals of the state are obtainable, apparently at lower cost than many observers thought likely. The first sale of emissions allowances in California attracted substantial attention because of competing claims about the design and expected performance of the auction. In that [...]