Comments on FHFA’s Proposed Rule on Enterprise Writing Standards for PACE Programs
As we have chronicled earlier on this blog, the Federal Housing Finance Agency (FHFA)'s court-ordered rulemaking on Enterprise Writing Standards for Property-Assessed Clean Energy (PACE) programs resulted in thousands of public comments in response to the Agency's Advance Notice of Proposed Rulemaking (ANPR)—the overwhelming majority in support of PACE. Today is the deadline for submitting comments on the FHFA's Proposed Rule, which directs Fannie Mae and Freddie Mac...
CONTINUE READINGThe Simple Economics of Sustainability
I would like to offer a few thoughts about Dan's recent post where he states; "The economic formulas assume that people want their children and grandchildren to be as well off as they are, no better and no worse. But people actually want the future to be better than the present, and they’re willing to make sacrifices for this to happen. The economists need to wake up to that fact." I suggest that all readers of this blog read the Nobel Laureate Robert Solow's 199...
CONTINUE READINGWhat the Convention Speeches Could Teach Economists About the Discount Rate
It's a bit of a leap from political conventions with their balloon drops and sign waving to the arcane issue of discount rates. But the conventions can be very informative because they're engineered by experts to appeal to the public. That makes them a good indicator of public attitudes and values. Like Mayor Castro, many of the speakers at both conventions spoke movingly about the sacrifices made by their parent and grandparents so they could have better lives. That w...
CONTINUE READINGWhat Is the Future Role of Fossil Fuels in the Electricity System?
If you put aside their environmental impacts, fossil fuels are wonderful for generating electricity. They are cheap, reliable, and currently in abundant supply. But the environmental drawbacks are considerable, and the most serious one is their contribution to climate change. To deal with climate change, do we need to adopt an attitude of unremitting hostility to fossil fuels, everywhere and under all circumstances? Or is a more nuanced approach warranted? The iss...
CONTINUE READINGBART Turns 40: Some History Lessons
BART, the Bay Area Rapid Transit system, turns 40-years-old today, with the unfortunate anniversary of 9/11. Some historical and financial tidbits: The original system was supposed to serve Marin and San Mateo Counties, along with San Francisco, Alameda, and Contra Costa Counties. According to Stephen Zwerling, San Mateo dropped out due to concern that neighboring Santa Clara County, which was not paying into the system, would take advantage of the San Mateo stop...
CONTINUE READINGNEWSFLASH: Officials Vow to Stamp Out Recycling Fraud!!
This just in: AP--"America faces an epidemic of recycling fraud. People are stealing newspapers from their neighbors' front yards so they can put them in their own recycling bins," said the director of Ohio's recycling program. He added, "This practice threatens the integrity of the entire recycling program. It must end immediately." He and other regulators across the country are imposing new safeguards against recycling fraud. Before their newspapers will be ac...
CONTINUE READINGNew Report on Electric Vehicle Policies & Capitol Hill Briefing Today at Noon ET (webcast available)
The environmental law centers at UCLA and UC Berkeley Schools of Law today released a new report on industry actions and federal, state, and local policies needed to stimulate long-term, mass adoption of electric vehicles. "Electric Drive by '25" (available from either UCLA Law or Berkeley Law) is the tenth report in our Climate Change and Business Research Initiative, funded by Bank of America. Please join me and my UC colleagues today, either in person or via webcas...
CONTINUE READINGAprès Mitt le Déluge?
When accepting the Republican nomination, Governor Romney treated us to a bit of humor about climate change. “President Obama promised to begin to slow the rise of the oceans and heal the planet," he said, "My promise is to help you and your family.” No one doubts that families need help, but is the idea of sea level rise really that funny? The experts don't think so. Climate change will eat away at America's coastlines, drowning beaches and wetlands. It will al...
CONTINUE READINGAre PACE Financed Residential Energy Improvements Capitalized into Home Prices?
The FHFA believes that an unintended consequence of obtaining a PACE loan is to increase the risk of mortgage default. The FHFA's logic is that if the green investments are not capitalized into home prices then the home owner's equity decreases as equity = sales price - debt owed. Under these assumptions, the green investment doesn't raise the sales price but does increase the debt owed. My recent research convinces me that this pessimism is false. Here is M...
CONTINUE READINGMore Good News About Implementing AB32
Below I report a new announcement posted to the California Air Resources Board Webpage discussing how a small group of academic economists will be playing a new role in designing the AB32 Cap & Trade program. Here is the announcement. My bottom line is that ARB has hired a Dream Team. Forget Lebron James and Kevin Durant and Kobe, the set of four economists named Borenstein, Bushnell, Bailey and Wolak can really play! The public (and that includes everyone)...
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