Common Resources

Recycling Revenue from a Carbon Tax

A national tax on carbon dioxide (CO2) emissions is a cost-effective and efficient tool to achieve environmentally beneficial emissions reductions that will generate billions of dollars per year in revenue for the US government. These carbon revenues can serve a range of purposes. They can pay for energy efficiency investments; they can finance cuts in […]

Solving Carbon Tax Competition Issues

Whether you’re designing a carbon tax or experimenting with a cap-and-trade policy, carbon pricing affects all participants differently. Potential inequality under a carbon tax has been a particular concern for energy-intensive, trade-exposed (EITE) sectors, whose energy-heavy processes and competitive global markets make them particularly vulnerable to carbon pricing disparities across countries. Politicians acting in the […]

Making Flood Insurance Affordable

The National Flood Insurance Program (NFIP) found itself floundering in debt after Hurricane Katrina devastated the Gulf Coast, sparking a legislative push to overhaul it. The result was a risk-based pricing plan under the Biggert-Waters Flood Insurance Reform Act, signed by the president last July after passing with wide bipartisan support. But recently, questions about […]

Update: EPA NSPS Proposal -Does- Separate Coal and Gas

On Friday, I wrote that EPA’s newly-proposed performance standards for GHG emissions from new power plants (NSPS) mostly preserved the agency’s earlier approach of putting gas- and coal-fired plants in the same “source category”: It’s true that the new proposal would revert to EPA’s past approach of separating steam plants, including natural gas combined cycle plants […]

Small Changes, But an Important Signal in New Power Plant GHG Proposal

Update: I’ve revised my understanding of EPA’s proposal and this post is no longer correct. See the update here. EPA released a major and long-awaited proposed regulation today, but the most important news might be something it didn’t do, and how that affects the next major step in regulating carbon under the Clean Air Act. […]

Estimating The Social Cost Of Carbon: Robert Pindyck’s Critique

The US government’s new consensus estimate of the social cost of carbon (SCC)—around $43 per ton of CO2 from a 2020 baseline—has met with some approval in academic and other circles (as we discussed yesterday). But some of the harshest criticisms, at least insofar as the blogosphere would interpret them, have come from MIT economist […]

Towards an Agreed-Upon Social Cost of Carbon

The social cost of carbon (SCC) is a monetary estimate of the global external (i.e., non-market) costs from a ton of CO2 (or greenhouse gas equivalent) emissions. These costs include, among other things, damages related to sea level rise, more frequent storms, and higher temperatures. These effects will vary over time but the SCC is […]

The UK, Fracking, and Mineral Rights

In an editorial, the Economist this week argues that “if Britain wants an American-style energy boom, it should import American-style local taxation.” In short, they argue that differences in public opinion toward fracking are driven by differences in how the benefits of development are distributed. In the UK (and most other European countries), subsurface mineral […]

How Energy Efficiency Features are Reflected in Home Prices

In a recent analysis of real estate data from Portland, OR; Austin, TX; and the Research Triangle region of North Carolina, we find, with colleague Todd Gerarden, that local “green” certifications appear to have a larger impact on sales prices for homes than the national Energy Star certification. We also find that Energy Star certification […]

Realistic Expectations for Carbon Policy - A Response

This is a guest post by Brian Potts, a partner at law firm Foley & Lardner, LLP in Madison. Yesterday I (Nathan) critiqued some arguments he’s made recently regarding prospects for EPA’s future carbon performance standards for power plants. I’m happy to offer Brian space here to respond to that critique. -Ed First, I would […]