Month: August 2012

The Ryan Consumption Tax and the Environment

One of the interesting elements of Paul Ryan’s budget plan is the proposal for an 8.5% consumption tax to replace the corporate income tax.  Consumption taxes, like the European VAT, have well-known pluses and minuses, described in a Brookings discussion. They are appealing to economists because they encourage saving.  As the European example shows, they …

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Public Health and the Changing Electicity Mix

The electricity mix has changed dramatically, as discussed by my colleagues from the Haas School recently. The following chart tells the tale: Notice that the blue line (coal) is diving, while the orange line (natural gas) is picking up the slack. The change seems to be due to the rapid decline in gas prices. The …

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Can Economists Predict AB32’s Impact?

A mildly interesting debate is taking place among the economists.  On Thursday, Bo Cutter and I published this opinion piece in the Sacramento Bee.   Bo and I are both supporters of AB32 but we are not “naive supporters” of this regulation.  I will speak for myself here and admit that I’m a modest man. …

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If Obama’s Done Nothing for the Environment Why Do the Coal Barons Hate Him?

I’ve had more than one conversation with Republican friends (yes, I have some) who are Romney supporters but also environmentalists.  One of the arguments they trump out about why they support Romney despite their environmental interests is that “Obama’s been weak on the environment anyway.”  They make this argument especially about climate change. While I …

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Standing Doctrine Undercuts Industry Challenges – A “Man Bites Dog” Story

According to an old saying, “dog bites man” isn’t newsworthy, but “man bites dog” is worth a headline.  Similarly, it’s not especially newsworthy when standing doctrine is used to toss environmentalists out of court.  It’s much more so when it’s used against industry. Yet in two recent cases, that’s exactly what the D.C. Circuit was …

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What Does Climate Change Mean for Water Rights?

Dan Farber and I, along with Berkeley economist Michael Hanemann, have a new report out on climate change and water rights in California.  The report—Legal Analysis of Barriers to Adaptation by California’s Water Sector—was prepared by Berkeley Law’s Center for Law, Energy & the Environment, and it can be downloaded here.  The report was released …

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Drive a Stake Through Ethanol’s Heart!

Okay, that’s even worse than a mixed metaphor: that’s a Friedmanism.  But it still applies today. Reuters reports: Two U.S. governors asked the United States government on Tuesday to waive this year’s mandate for making ethanol from corn, adding pressure on it to relieve meat producers from high corn prices spurred by the worst drought …

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Interior, Defense and Energy Departments Team Up to Advance Renewable Energy on Public Lands

The renewable energy side of President Obama’s “all-of-the-above” energy strategy received a significant boost in the past two weeks, with a veritable relay of Department of Energy, Interior and Defense actions on clean energy. On July 24, the Department of Energy (DOE) and Department of the Interior (DOI) released the Final Programmatic Environmental Impact Statement …

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Energy Forecasts, Accuracy and Climate Change

The U.S.  Energy Information Administration (EIA) provides very important forecasts of energy prices, consumption, efficiency and so forth.  The EIA produces short, long term and annual outlooks that are widely regarded as among the best and most independent forecasts of the state of the nation’s energy use.  The agency even has statutory authority to operate …

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The Puzzling Silence Surrounding Richard Mourdock’s Consulting Business

Mourdock is a former oil company geologist and coal company executive. But his most recent job before running for public office is a bit mysterious.

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