Severin Borenstein’s post raises an important issue that economists have ignore for too long. I posted the following comment there:
We gave politicians the tool of benefit-cost analysis which they have used to justify their policy objectives, but we completely failed to drive home the requirement that those parties who are on the losing end need to be compensated as well. I looked in my edition of Ned Gramlich’s book on Benefit-Cost Analysis (who taught my course), and the word “compensation” is not even in the index! Working on environmental regulations, I regularly see agency staff derive large positive ratios for the “general public” and then completely dismiss the concerns of particular groups that will be carrying all the burdens of delivering those benefits. If we’re going to teach benefit-cost analysis, we need to emphasize the “cost” side as much as the “benefit” that politicians love to extol.
Source: Creative Pie Slicing To Address Climate Policy Opposition |
California’s SB 775 would prohibit interaction with other states’ cap and trade programs. The best alternative to a federal program is a network of state markets.
“A cap-and-trade program in Virginia would be the third in the U.S., and buck direction from the White House to pull back on carbon regulation.”
Source: Virginia to establish cap-and-trade program in push to regulate carbon emissions | Utility Dive
I’ve been struck by the lack of panic in the energy industry about President Trump’s decision. This article goes into that underlying confidence that the momentum appears unstoppable.
WASHINGTON — President Trump’s decision to abandon the Paris Accord will slow the battle against climate change in the U.S., but there’s too much momentum in the nation’s clean-energy economy to shut it down, energy experts say.
Source: Clean energy too big to be shut down by Trump – San Francisco Chronicle
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.
By Anya McCann, COOL Cuisine
Altering your diet can alter the climate.
Source: Shifting Diets: Beans Not Beef | Davis Vanguard
Former French President Sarkozy suggested that if the U.S. pulled out of the Paris Climate Accord, that the EU impose carbon tariffs on U.S. goods. Many economists have suggested that this may be the best solution to gaining collected global action. So perhaps Trump’s win will actually further action on climate change rather than delay it.