Federal Climate Policy
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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CONTINUE READINGThe 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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CONTINUE READINGGuess 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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CONTINUE READINGDueling 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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CONTINUE READINGCoal 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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CONTINUE READINGPolitics 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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CONTINUE READINGWhat 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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CONTINUE READINGA 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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CONTINUE READINGThe 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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CONTINUE READINGHas EPA’s Proposed NSPS Expired?
Responding to claims that EPA must withdraw its proposed rules to control power-plant GHGs under CAA § 111
Challenges to EPA’s emergent program to regulate greenhouse gas (GHG) emissions under Clean Air Act section 111 continue to mount. Recently, the Attorneys General of 19 states sent a joint letter to EPA arguing that because EPA failed to finalize its proposed New Source Performance Standard (NSPS) for GHG emissions within one year—as the Clean …
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