Common Resources

Market Shares and Technology Driving Up Fuel Economy in New Vehicles

From the late 1980s to about 2004, the average fuel economy of new passenger vehicles in the United States declined gradually. Then, over the past 10 years, fuel economy jumped suddenly, up almost 20 percent by 2012. In a recent paper, my colleague Shefali Khanna and I ask which end of the production line explains […]

A Global Perspective on the Social Cost of Carbon

Some recent posts examining estimates of the social cost of carbon (SCC) noted that the SCC applies to the world as a whole: it is the global concentration of CO2—irrespective of the geographic origin of emissions—that prompts concern over climate change. How does that fact translate into costs facing one or another CO2-emitting country?

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. […]

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 […]

Technology Flexibility and Stringency for Greenhouse Gas Regulations

The Clean Air Act provides the current regulatory framework for climate policy in the United States. A key component of US policy as called for in President Obama’s recent memorandum to the US Environmental Protection Agency (EPA) will be the use of flexible approaches in achieving reductions in greenhouse gas emissions. EPA is expected to […]

The Global Cost of Carbon Emissions: A Lingering Quandary For Policy

The federal government has a new estimate for the global social cost of carbon emissions. A recent “Technical Support Document” prepared by an interagency working group bears the more elaborate and dispassionate sub-title: “Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis—Under Executive Order 12866.” That Executive Order, among other things, allows “agencies […]

Climate Policy in California: What It Means for the State and Beyond

I recently testified before a California Senate Select Committee on the state’s climate policies about California’s interactions in the development of policy across the country and internationally. I highlighted the four main points below in my remarks, and you can read the full testimony here. California is not alone. It is joined by many other […]

Policy Options for Addressing Carbon Tax Impacts to Households

Carbon pricing remains the strongest option for reducing greenhouse gas emissions and mitigating climate change. But such a policy still faces serious political hurdles in part because of the perception that a carbon tax would most negatively impact the poor. Clayton Munnings and I address the potential of a carbon tax to actually be progressive […]

Aligning Carbon Markets: The Case of California and the Regional Greenhouse Gas Initiative

Incrementally aligning policies in distinct carbon markets—linking by degrees—can allow programs to experience immediate benefits of sharing best practices in program design. Together with colleagues at RFF and Yale, we’ve examined the details and prospects for the cap-and-trade programs in California and the Northeast. Read more here.

Thinking Like an Economist within the Complex Climate Policy Regime

Building on recent work that highlights the need to account for institutions in crafting economic solutions to environmental problems, Matt Woerman and I look specifically to the implementation of climate policy—and how incentive-based thinking can help. Read more here.