Economics

Advancing public and private policymakers’ understanding of the complex interactions between climate change and the economy is critical to taking the most cost-effective action to reduce greenhouse gas emissions. Read More
 

Conservatives debate a carbon tax

The discussion of a carbon tax continues. Conservatives met recently in Washington, D.C., to debate the mertis of a carbon taxt at an event hosted by the R Street Institute and the Heartland Institute, featuring representatives with opposing viewpoints from four conservative think tanks.

A 2013 C2ES brief found that a carbon tax was one way to put a price on carbon emissions, reduce greenhouse gas emissions, and raise significant revenue for the federal government. A tax starting at about $16 per ton of carbon dioxide (CO2) in 2014 and rising 4 percent over inflation per year would raise more than $1.1 trillion in the first 10 years, and more than $2.7 trillion over a 20-year period. This revenue could fund a wide range of things, including deficit reduction, a reduction in statutory corporate income tax rates from 35 percent to 28 percent (often cited as a goal by both conservatives and liberals), and research and development into low-emitting technology.  Importantly, such a carbon tax could also reduce CO2 emissions by 9.3 billion tons over 20 years.

Market Based Climate Mitigation Policies In Emerging Economies

Market Based Climate Mitigation Policies In Emerging Economies

December 2012

by Sara Moarif and Namrata Patodia Rastogi

Download the full report (PDF)

Press Release

Summary

Used by governments for decades, market-based policies are mechanisms to control environmental pollution at various leverage points. They work by changing relative prices – raising the cost of emissions-intensive activities and/or lowering the cost of lower-emitting alternatives – to provide producers and consumers with a financial incentive to adopt the latter. Policies that can be considered market-based include taxes and fees, subsidies, and the use of pollution control trading systems. Market-based policy instruments provide financial incentive to elicit specific behavior from entities responsible for greenhouse gas (GHG) emissions, whether consumers or producers.

This brief provides an overview of market-based policies aimed at reducing GHG emissions in several major emerging economies: Brazil, China, India, South Africa and South Korea. By implementing regulatory and marketbased policy instruments across their economies, these countries are seeking to promote cleaner technologies and behavior change while also promoting economic development and growth.

Sara Moarif
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We could find common ground on a carbon tax

I recently replied to a question on the National Journal blog, “Is Washington ready for a carbon tax?”

You can read other responses at the National Journal.

Here is my response: If we’re going to get serious about reducing the greenhouse gas emissions that are causing climate change, the most efficient and effective policy is to put a price on carbon.

Why we could see climate change action

I recently replied to a question on the National Journal blog, "Do the results of the 2012 election pave the way for Washington to achieve bipartisan energy and environment policies?"

You can read other responses at the National Journal.

Here is my response: In his victory speech, President Barack Obama called for an America “that isn’t threatened by the destructive power of a warming planet.” With mostly the same players who failed to pass any significant climate legislation returning to Washington, can we expect a different result?

Possibly -- and for two reasons.

California leads the way on climate action

California, a leader in efficiency and clean energy policies for decades, is about to embark on another pioneering climate change program.

November 14 marks the first auction in its cap-and-trade system, which uses a market-based mechanism to reduce the greenhouse gas emissions that are warming the planet.

On its own, California’s program will drive down harmful emissions in the ninth largest economy in the world. But perhaps more importantly, California’s example could guide and prod us toward national action against climate change.

A “Middle America” climate strategy must include policies to bring clean energy to market

An op-ed this week in The Washington Post, “The Middle America climate strategy,” is correct in saying that we need an energy policy that doesn’t cost more. Unfortunately, Matthew Stepp’s definition of cost, and his prescription for getting to a low-carbon energy supply, are incomplete. 

Our current energy policy is imposing enormous costs on our society; it’s just that these costs are hidden from view.

Eileen Claussen Comments on the Federal Government's New Fuel Economy Standards

Statement of Eileen Claussen
President, Center for Climate and Energy Solutions

Aug. 28, 2012

This is a win all around - it saves consumers money, reduces dependence on foreign oil, and is the biggest step ever by the United States aimed at reducing carbon emissions.

While Congress remains utterly gridlocked on energy and climate issues, the Obama administration and the auto industry have proven that real progress is still possible.  Working together, they've crafted a common-sense solution that taps technological innovation to benefit both the economy and the environment. Credit also goes to the state of California, for paving the way, and to the regulatory flexibility afforded by the Clean Air Act.

This is a victory for climate protection, but only one of the major steps needed to dramatically reduce our carbon emissions. Next we must tackle emissions from power plants and other stationary sources. The climate benefits may not be as easy to see as lower prices at the pump, but are no less real.

Recent extreme weather and the worst drought in half a century illustrate the costly toll of increased warming. Climate change is no longer a prediction - it is here and now. As the costs become more pronounced, we will hopefully see the strong public support and political leadership needed to mobilize an effective across-the-board response.

For more information, view our Federal Vehicle Standards page.

Contact: Laura Rehrmann, 703-516-0621, rehrmannl@c2es.org
 

Congress Finally Reforms Flood Insurance

Late last week, in a heartening display of bicameral and bipartisan harmony, Congress passed a bill reauthorizing the National Flood Insurance Program (NFIP) and taking steps to steer it toward solvency. Among those steps is ensuring that climate impact projections are factored into future calculations of flood risk.

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