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
Market Based Climate Mitigation Policies In Emerging Economies
by Sara Moarif and Namrata Patodia Rastogi
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.
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.
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, 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.
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.
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.
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Contact: Laura Rehrmann, 703-516-0621, firstname.lastname@example.org
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.
Market Mechanisms: Understanding the Options
The most recent study on climate change by the U.S. National Academy of Sciences concluded that, “Climate change is occurring, is caused largely by human activities, and poses significant risks for—and in many cases is already affecting—a broad range of human and natural systems. (See Climate Change 101: Science and Impacts.) The combustion of fossil fuels has contributed to the expansion of the global economy since the start of the Industrial Revolution. It has also substantially increased the concentration of carbon dioxide, the primary greenhouse gas in the atmosphere. The cumulative impact of these emissions poses significant economic risks. Policies to reduce emissions are required if we are to avoid the most costly damages of a rapidly changing climate. This brief describes how market-based policies can achieve climate goals more cheaply and efficiently than alternative policy structures—all while driving innovation to develop more cost effective, clean energy solutions that will serve as the foundation for strong economic growth throughout the 21st century.