Author Archives: Severin Borenstein

Rationalizing California’s Residential Electricity Rates

California is finally talking seriously about changing the way utilities price electricity for residential customers.  In particular, as a result of recent legislative actions, the CPUC now has some flexibility to modify the extreme increasing-block pricing (IBP) schedules that were … Continue reading

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Californians Can Handle the Truth About Gas Prices

A few weeks ago, Jim blogged about the concerns that cap-and-trade will drive up gas prices in California.   In late June, those concerns resulted in a letter from Assemblymember Perea and 15 other Democrats asking the California Air Resources Board … Continue reading

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What’s the Worst That Could Happen?

[This post is co-authored with my three collaborators in cap-and-trade work for the California Air Resources Board:  Frank Wolak, Jim Bushell and Matt Zaragoza-Watkins.]   California’s year-and-a-half old cap-and-trade market for reducing greenhouse gases (GHGs) has drawn renewed interest over … Continue reading

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Money for Nothing?

Since the beginning of electricity grids, demand has fluctuated and supply has been made to follow along. But for decades, economists and some grid engineers have dreamed of having demand play a more active role in balancing the system.  With … Continue reading

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It’s Time to Refocus California’s Climate Strategy

You know this already, but let’s review: Climate change is a global emissions problem. California produces about 1% of the world’s greenhouse gas emissions. Over the next few decades, the majority of emissions will come from developing countries. If we … Continue reading

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In Defense of Picking Winners

Virtually all economists working on climate change agree that we should price GHG emissions.  Doing so creates an incentive to reduce emissions without the government directing specific technology adoptions or activity changes, that is, without “picking winners.” Nearly as many … Continue reading

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What wood smoke has taught me about fighting climate change

While much of the U.S. has been dealing with severe winter weather, California is experiencing a record dry spell.    The clear skies have also brought some cold nights and, with them, wood smoke.  What I’ve noticed in my neighborhood is … Continue reading

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