Capping greenhouse gas (GHG) emissions at individual facilities is a bad idea whose time, unfortunately, may have come in California. Unlike a statewide cap or tax on emitting GHGs, facility-specific … Continue Reading One Stone, No Birds
How a “little” California vehicle standard prevented an urban “airmaggedon” My midlife crisis did not lead to me to buy a German convertible — which would assist me in tanning … Continue Reading Save the California Waiver!
Economists have long complained about Fuel Efficiency standards. Are we happy now? The past 50 days felt like the beginning of a game of environmental policy Jenga. The new administration … Continue Reading A Tale of Two Standards
In a recent Saturday Night Live episode, Baldwin-as-Trump is casting about for clever ways to get Mexico to pay for the border wall. But with each attempt, the joke is … Continue Reading How Would Energy Prices Adjust to the Border Adjustment Tax?
Technological advances and learning-by-doing have made U.S. shale oil profitable even at $55/barrel. Just ten years ago shale oil was expensive. Global oil prices spiked to $135/barrel in 2008 but … Continue Reading Learning to Frack
There are lots of government policies that economists like to roll their collective eyes about and use as examples of bad incentives in economics textbooks. In many cases these policies … Continue Reading Does Anyone Really Know How Much Electricity Goes into Cars?
Uncertainty about U.S. environmental policies creates an incentive for films to delay investments. Large-scale changes are anticipated for U.S. environmental policies heading into 2017. The new administration has promised a … Continue Reading Policy Uncertainty Discourages Innovation and Hurts the Environment
Many people thought U.S. gasoline consumption had already peaked. They were wrong. August was the biggest month ever for U.S. gasoline consumption. Americans used a staggering 9.7 million barrels per … Continue Reading Addicted to Oil: U.S. Gasoline Consumption is Higher than Ever
For the first time in decades, Mexican drivers now have a choice when buying gasoline. Gasoline stations in Mexico have all been exactly the same for decades. PEMEX, the state-owned … Continue Reading Move Over PEMEX
With gasoline prices averaging $2 per gallon, automakers are pushing back hard on U.S. fuel economy standards. Last year was the biggest year ever for the U.S. auto industry with … Continue Reading Automakers Complain, but CAFE Loopholes Make Standards Easier to Meet
Both Max and Lucas have recently written on this blog about the need to price gasoline appropriately. I agree with them…mostly. I mean, how could I disagree with them? I’m … Continue Reading Driving Taxes for the 21st Century
Ambitious new IMF research quantifies energy externalities for 156 countries. Last month Meredith wrote about coal being too cheap and Max wrote about gasoline being too cheap. But what is … Continue Reading Getting Energy Prices Right
Two weeks ago on this blog, Max drew our attention to the fact that gas is too darn cheap. To underscore this point, he noted that the average American … Continue Reading Coal is too Cheap
Readers of this blog are likely aware that oil is really cheap right now. While in July 2008, the U.S. benchmark price peaked at just above $140 a barrel, its … Continue Reading Gas is too cheap
A brief economic primer on how U.S. fuel economy standards work. New vehicles sold in the United States have long been subject to a set of fuel economy regulations known … Continue Reading New CAFE Standards: The Good, the Bad, and the Ugly