Federal Climate Policy

California’s Effort To Set 2030 Greenhouse Gas Emissions Fails

What are the implications for ongoing climate efforts?

In another, even bigger setback for the environmental community in California, SB 32 (Pavley), the bill to set greenhouse gas targets for 2030 and 2050, was pulled yesterday and will be tried again next year. The winners are the oil companies, who face tough regulations and competition from California’s climate efforts. The failure is a …

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The Shadow Price of Carbon

Merging Cost-Benefit Analysis and Feasibility Analysis

The U.S. government has devoted a lot of time and effort to estimating the social cost of carbon.  This is basically a standard exercise in cost-benefit analysis, following a familiar three-step process: 1.   Impacts. Figure out the physical impacts of the emissions.  This involves setting up some emissions scenarios and then running computer simulations to …

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The Top Ten Reasons Trump Should Endorse a Carbon Tax

A bold move, if Trump is brave enough to go there.

Not that he’s asked for my advice, but here are ten powerful reasons why Donald Trump should endorse a carbon tax: 10.  It would be completely inconsistent with his past positions. 9.    It would shock the GOP establishment. 8.    It would shock the media. 7.    He’s already endorsed a tax increase for …

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Guess Who Benefits From Regulating Power Plants

The answer will surprise you.

What parts of the country benefit most from the series of new EPA rules addressing pollution from coal-fired power plants?  The answer is not what you think. EPA does a thorough cost-benefit analysis of its regulations but the costs and benefits are aggregated at the national level. In a new paper, David Spence and David Adelman from the University …

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Dueling Laws and the Clean Power Plan

EPA has shifted its position toward more readily defensible ground.

One of the most serious legal challenges to EPA’s Clean Power Plan — and probably the only one that could completely derail it — involves an exceptionally abstruse legal issue.  When Congress tried to amend an obscure part of the Clean Air Act, someone screwed and two different versions were included in the final law. That …

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Coal States File Premature Petition to Block Clean Power Plan

AGs Sue For Tactical and Political Reasons Even Though Their Legal Case is a Loser

Attorneys General from 15 states, led by West Virginia, filed a petition in federal court yesterday to block the Clean Power Plan (CPP) from going into effect.  The filing seems to be more tactical and political than a serious legal claim:  the Environmental Protection Agency has yet to publish the rule in the Federal Register …

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Politics v. Legality and the Clean Power Plan

EPA’s Final Plan Changes State Targets, With New Winners and Losers

When the President released the final version of the Clean Power Plan last week, it contained a number of big alterations to the draft plan.  One of the most significant changes  was the way each state’s greenhouse gas emissions target was calculated.  The bottom line is that — generally — states more heavily reliant on …

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What the Market Is Telling Us About Coal

Dump your coal stocks while you still can!

The market’s message is simple: coal’s day is ending. Three major coal companies (Alpha Natural Resources, Walter Energy, and Patriot Coal) have gone into bankruptcy. The two largest publicly traded  companies (Peabody and Arch) are now trading for a dollar a share, down from $16 and $33 within the past year. They, too, may well …

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A Case of Reverse Causation?

Tomorrow’s Emission Determine Today’s Social Cost of Carbon

Here’s the weird thing: the social cost of carbon today, depends significantly on the year-by-year emissions of carbon in the future, which we obviously don’t know. (Because it depends on our own future actions!)  It takes some explanation to show why that’s true and how it matters. If you know a bit about climate policy, you know …

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The Next Six Months

A half-dozen crucial developments will shape environmental policy for years to come.

The next six months will be unusually important in environmental law.  There are six key areas to keep an eye on: 1.  The Paris climate talks.  The world’s governments meet every year in December as part of continuing negotiations on climate issues.  This year’s meeting will be the most critical since Copenhagen, six years ago.  The …

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