Tag Archives: greenhouse gases

Could Trumps win lead to global carbon tariffs?

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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.

Reblog: Inconvenient Truths about Landowner (Un)Willingness to Grow Dedicated Bioenergy Crops: Choices Magazine

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

Where Should All the Coal Miners Go? – Pacific Standard

An interesting discussion about the failures and lessons for broad scale retraining programs.

My own thought is that we need to buy out the homes of displaced workers at the higher of either their purchase cost or the assessed value to facilitate moving to a new job location.

Source: Where Should All the Coal Miners Go? – Pacific Standard

Maybe time to look for High Speed Rail alternatives?

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 bus27chinabus01-master768 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.

Ideas on adopting world carbon prices

Two news items showed up today on the idea of adopting a worldwide carbon price to reduce GHG emissions. The general idea is to use one of three approaches: 1) world cap & trade allocations (which has been the underlying notion in negotiations so far); 2) setting a specific carbon price or tax through treaty; or 3) using trade tariffs by a coalition of participating nations to incent non-participating ones to control their emissions. There is evidence that pricing carbon is effective in reducing emissions.

The U.S. Secretary of Energy called for a world carbon price implemented through one of the first two methods listed here.

The new American Economics Review has an article that shows that a trade tariff regime imposed by a coalition can induce other nations to control their emissions.

The Strategic Value of Carbon Tariffs
Christoph Böhringer, Jared C. Carbone and Thomas F. Rutherford
We ask whether the threat of carbon tariffs might lower the cost of reductions in world carbon emissions by inducing unregulated regions to adopt emission controls. We use a numerical model to generate payoffs of a game in which a coalition regulates emissions and chooses whether to employ carbon tariffs against unregulated regions. Unregulated regions respond by abating, retaliating, or ignoring the tariffs. In the Nash equilibrium, the use of tariffs is a credible and effective threat. It induces cooperation from noncoalition regions that lowers the cost of global abatement substantially relative to the case where the coalition acts alone. (JEL D58, F13, F18, H23, Q54, Q58)
Full-Text Access | Supplementary Materials