environmental economics

The Flight From Evidence-Based Regulation

This Administration specializes in arguments for ignoring the evidence.

The Trump Administration’s major deregulatory efforts share a common theme. They assiduously avoid having to rely on scientific or economic evidence. Confronting that evidence is time-consuming and difficult, particularly when it often comes out the other way. Instead, the Administration has come up with clever strategies to shut out the evidence. The effort to repeal …

CONTINUE READING

From the Grand Canyon to Contaminated Cantaloupes – and More

Five books with fresh perspectives on environmental issues.

Law reviews make little effort to track new books, unlike other journals in other disciplines . So it’s pretty much hit-or-miss whether you learn about relevant new books.  I wanted to share some interesting finds that have crossed my desk, joined a growing pile of unread books, and then slowly left the pile. The subjects …

CONTINUE READING

Pricing Carbon: What Does It Actually Accomplish?

Pricing carbon may not work the way economists thought.

In theory, pricing carbon should incentivize emissions reductions.  In reality, it is unclear to what extent that takes place unless the carbon price is very high.  This is not to say that pricing carbon is useless, but the main benefits may take different forms. Basically, there are two ways of putting a price on carbon.  …

CONTINUE READING

Low-Hanging Fruit

A powerful metaphor can be illuminating, but it can also be highly misleading.

The idea of long-hanging fruit is ubiquitous in environmental policy — sometimes in the form of a simple metaphor, other times expressed in more sophisticated terms as an assumption of rising marginal costs of pollution reduction. It’s an arresting metaphor, and one that can often be illuminating. But like many powerful metaphors, it can also …

CONTINUE READING

Economists vs. Environmentalists: Time for Deténte?

You don’t have to love economics to see it as a possible ally.

Cost-benefit analysis has long been the target of environmentalist ire.  But one lesson of the Trump years has been that economic analysis can be a source of support for environmental policy — it is the anti-regulatory forces who have to fudge the numbers to justify their actions.  Most energy and environmental economists are aghast at …

CONTINUE READING

The Social Cost of Carbon – Revisited

The case for using global rather than simply U.S. impacts.

The estimated harm done by a single ton of carbon in the atmosphere – the “social cost of carbon” — is a key factor in setting climate policy. The Trump Administration is trying to get its estimate as close to zero as possible. A key part of this effort is to exclude from consideration the …

CONTINUE READING

Will Renewable Energy Keep Getting Cheaper?

Technological and economic forces will continue to cut prices, regardless of Trump.

The Trump Administration is trying to save coal and stop the growth of renewables. Just this week Scott Pruitt issued a proposed repeal of Obama’s Clean Power Plan. Whether or not the repeal succeeds, Pruitt & Co. are  fighting against the economic tide.  If the price of renewables continues to fall, it will be harder …

CONTINUE READING

Obsolete Arguments Against Climate Action

Conservatives keep repeating the same arguments, even though the world has changed.

There used to be some fairly plausible arguments against fighting climate change. I don’t mean crackpot theories about hoaxes or the “I’m not a scientist” hokum. Instead, the arguments I have in mind could be made with a straight face by serious people. I don’t think these arguments were ever truly persuasive, but they weren’t …

CONTINUE READING

Whither the Social Cost of Carbon?

Trump rescinded the Obama Administration’s estimate. Now what?

Republicans vehemently attacked the Obama Administration’s estimate of the social cost of carbon. Trump withdrew that estimate and directed individual federal agencies to do their own estimates. The agencies will now be faced with a number of problems, and it’s not clear that they are well positioned to deal with them.  They might prefer to …

CONTINUE READING

Cutting Through the Smog

New research highlights the importance of reducing ozone pollution and suggests ways to do it.

As a change of pace, here’s a post that’s not about Trump, Pruitt, or their friends in Congress.  Two recent papers highlight the importance of EPA’s tightening of the air quality standard for ozone and suggest some ways of doing so that could be more acceptable to industry. (We’re talking about ground-level smog here, not …

CONTINUE READING

TRENDING