Meredith Fowlie at the Energy Institute at Haas (California’s Carbon Border Wall ) and Dallas Burtraw at RFF have taken on the specific issues in the proposal to replace California’s cap & trade program (CATP).
Yet there’s a bigger issue with SB 775: Why are we so focused on getting every last ton of GHG reduction out of California, when instead we should be focused on creating a system that can easily accommodate integrating with other jurisdictions and encourages others to join the effort? What California does alone is absolutely meaningless in changing climate change risk. It requires a truly global effort. Putting up border walls won’t accomplish this.
The proposal would eliminate allowance banking and offsets, and add a border adjustment mechanism. This would isolate California from global efforts to mitigate GHG emissions.
Source: Guest Blogger Dallas Burtraw: Three Revisions Not to Overlook in California’s New Cap-and-Trade Proposal, SB 775 | Legal Planet
Dedicated production of biofuels has been a Holy Grail for the sector, but this study finds that this is unlikely.
Source: 4th Quarter 2016 | Choices Magazine Online
This blog post on Fox & Hounds is an example of how to take statistics of one cause-and-effect relationship and misapply them to another situation. In this case, this graphic above shows how GHG emissions have dropped dramatically in states that used to burn coal to generate electricity, but now rely much more on natural gas. The decline in coal emissions has occurred over the last half-decade due to the fall in gas prices and the increased stringency in air quality regulations. But more importantly, those states had higher emissions that California to start with because they have been laggards in protecting their environments. The chart shows that these states are finally starting to catch up! If anything, this supports adopting SB 32 as a follow on to AB 32!
Yet the blog post misconstrues this situation to argue that it’s the “free market” that somehow is generating these greater reductions, implying that California and Mississippi had started from the same place–which of course if far from the truth. Yes, the market push from natural gas fracking explains some of this, but California was already so far ahead due to its own efforts that it has less room to improve.
Watch for these types of misrepresentations. Understand the initial premises by the authors. Ask hard questions before you accept their conclusions.
Source: There’s a Better Way :: Fox&Hounds
From the AMERICAN ECONOMIC JOURNAL: ECONOMIC POLICY
VOL. 8, NO. 3, AUGUST 2016
Understanding the potential impacts of climate change on economic outcomes requires knowing how agents might adapt to a changing climate. We exploit large variation in recent temperature and precipitation trends to identify adaptation to climate change in US agriculture, and use this information to generate new estimates of the potential impact of future climate change on agricultural outcomes. Longer run adaptations appear to have mitigated less than half–and more likely none–of the large negative short-run impacts of extreme heat on productivity. Limited recent adaptation implies substantial losses under future climate change in the absence of countervailing investments.
Source: American Economic Association
High speed rail (HSR) may not be the best means to moving people quickly from San Francisco to Los Angeles–it looks like a 20th century solution to a 21st century problem. I’ve written written about how electric vehicles will diminish the projected GHG emission reductions, and may be an effective alternative. Now comes a Chinese-designed super bus that can use the same I-5 lanes simultaneously with cars. (See the video in the link above.) The Dutch have developed a high-speed electric bus that also can use I-5 at little added cost.
And now comes word that the auction of greenhouse gas (GHG) allowances by the State fell well below forecasts. Due to how HSR is funded out of that allowance fund, HSR’s share will fall by 98% to $2.5 million. Given that the state still has not attracted any private investment, which is a necessity to make this go, it may be time to rethink solutions.
Maximillian Auffhammer at UC’s Energy Institute @ Haas focuses on the issue of exporting coal from the Port of Oakland, but he turns to the issue I highlighted recently–the path to accomplishing environmental objectives should travel through compensating those who are worse off from such policies.
Source: Leaking Coal to Asia