Tag Archives: cap-and-trade

Cap-and-Trade’s Moment of Truth

With the looming expansion of its cap-and-trade program to transportation fuels like gasoline, California is fast approaching a significant moment of truth for its climate policy. This has some people nervous, and there are growing rumblings of proposals to delay, perhaps … 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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Swapping negawatts for megawatts under the EPA’s proposed Clean Power Plan

If you are embarking on a new weight loss plan, it typically makes sense to pursue a mixed strategy of diet and exercise. If you are working to get your finances under control, you should look for ways to increase … Continue reading

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EPA and climate regulation: Mind the gaps

Last week, following years of anticipation, the shoe finally dropped on EPA carbon regulations. Two or three things are notable in this. First, we’re on the road to a national climate policy!   Second, EPA is going out of its way to … Continue reading

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Unlocking Cost Savings with Cap-and-Trade

Much was made last week about the flexibility of the EPA’s proposed new power plant regulations. According to EPA administrator Gina McCarthy, it “gives states the flexibility to chart their own customized path. There is no one-size-fits-all solution. Each state … Continue reading

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The Yoga Theorem

With yesterday’s historical release of the EPA’s new carbon emissions policy, I took an extra day to comb through and digest the news. I have organized my intermediate microeconomics class around something called the “Yoga Theorem.” This almost universal truth … Continue reading

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Cap-and-Trade Throws a Wrench into the Gears of Green Consumerism

Last week, Severin posted a great piece on household electricity consumption. Armed with a simple metering device and your energy bill, you can easily measure how your various household appliances affect your energy consumption and your pocketbook. Understanding the link … Continue reading

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California’s Cap-and-Trade Market Still Needs a Price Ceiling

Back in May, I blogged about the problem of low GHG allowance prices in the EU-ETS.  I explained the sound reasons for having both a price floor and a price ceiling in any allowance market where science doesn’t dictate a … Continue reading

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Learning and Forgetting the Wisdom of Coase

I was an Assistant Professor at the University of Michigan in 1985 when our downsizing department library put a stack of old journals in the hallway for disposal.  Walking by the pile, I spotted the 1960 Journal of Law and … Continue reading

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Putting a Collar on Carbon Prices

When it was launched in 2005, the EU cap and trade program for greenhouse gases (known as the Emissions Trading System or EU-ETS) was a bold and important step in addressing climate change.  But from the beginning, the EU-ETS has … Continue reading

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