What to Watch For in EPA’s Final Clean Power Plan: The Promises of Multi-State Compatibility

Later this summer, the US Environmental Protection Agency (EPA) will release its final Clean Power Plan, setting carbon emissions goals for existing power plants. This is the fourth post of ten in a new series—What to Watch For in EPA’s Final Clean Power Plan—in which RFF experts address what to look for when the final […]

Low Allowance Prices in the EU Emissions Trading System: New Research on an Evolving Program

The EU Emissions Trading System (ETS) for carbon dioxide (CO2) is the largest worldwide. Since its inception in 2005, it has experienced allowance price volatility and low overall prices. Generally, the fact that it costs less than anticipated to reduce CO2 emissions would be good news. Instead, these price dynamics are bad news for many […]

Significant, Widespread Health Benefits Possible under EPA’s Clean Power Plan

Politics is typically about the here and now. And so shaping policy to address climate change poses a particularly difficult challenge. The benefits appear to be dispersed globally and accrue decades into the future, while the costs of reducing greenhouse gas emissions would be felt immediately. Or so the story goes. The problem with this narrative […]

Should We Price the Carbon From Federal Coal?

Conversations in the United States about policies to reduce emissions from fossil fuels have normally focused on a number of “downstream” approaches that target the end or intermediate users of fossil fuels. Notably, the US Environmental Protection Agency’s proposed Clean Power Plan addresses emissions from existing electric power plants, and fuel economy standards are reaching […]

Coordination Challenges and a Policy Option for US and Global Climate Efforts

In recent years, US climate plans have changed abruptly. In a new RFF discussion paper, with RFF Center Fellow Anthony Paul and Research Assistant Sophie Pan, we examine the challenges for progress—specifically, of coordination among jurisdictions—that presently face policymakers in both the United States and around the world. The current centerpiece of US policy is […]

Resources Magazine: Saving Europe’s Key Weapon against Climate Change

Climate change is widely regarded as the greatest threat to the global environment. But the centerpiece of the European Union’s climate policy is being hobbled. That centerpiece is the cap-and-trade Emissions Trading System (ETS), under which companies buy and sell carbon reduction credits. The cause of the problems plaguing the European market is the presence of […]

Cap and Trade in China: How Might It Work?

China plans to start a nationwide cap-and-trade market in 2016. But can China, whose economy still contains many nonmarket features, properly design and implement a fundamentally market-based policy? In our new RFF discussion paper, my coauthors (RFF’s Richard Morgenstern, Zhongmin Wang, and Xu Liu) and I attempt to answer this question by examining cap-and-trade pilot […]

How US Gridlock May Handicap Climate Leadership

Next week, world leaders will meet at the United Nations in New York City at the invitation of UN Secretary-General Ban Ki-moon. The purpose of the meeting is to discuss actions the leaders will take to limit their country’s emissions of greenhouse gases in an effort to forestall global climate change. For many, success of […]

Tax Inversions and Carbon Taxes

Because the US has the highest corporate tax rate in the world, firms can save billions of dollars by attaining a new corporate address in a low-tax country without physically relocating any of their existing business. To do so, American firms simply need to acquire a foreign firm and reincorporate the newly formed company abroad. […]

Mixing and Matching Electricity Sector Policies

A number of concerns have emerged over the last decade about climate change, energy security, and energy efficiency, inspiring an equally long list of proposed policy fixes. The majority of these options, including renewables subsidies, performance standards, and emissions pricing schemes, apply directly to the power sector. Lawmakers can also choose to implement multiple policies […]