Found 10 article(s) for author 'Energy Policy'

China’s Emissions Trading System and an ETS-Carbon Tax Hybrid

China’s Emissions Trading System and an ETS-Carbon Tax Hybrid. Dale Jorgenson, April 29, 2019, Paper, “China is introducing a national carbon emission trading system (ETS), with details yet to be finalized. The ETS is expected to cover only the major emitters but it is often argued that a more comprehensive system will achieve the emission goals at lower cost. We first examine an ETS that covers both electricity and cement sectors and consider an ambitious cap starting in 2017 that will meet the official objective to reduce the carbon-GDP intensity by 60-65% by 2030 compared to 2005 levels. The two ETS-covered industries are compensated with an output-based subsidy to represent the intention to give free permits to the covered enterprises. We then consider a hybrid system where the non-ETS sectors pay a carbon tax and share in the CO2 reduction burden. Our simulations indicate that hybrid systems will achieve the same CO2 goals with lower permit prices and GDP losses. We also show how auctioning of the permits improves the efficiency of the ETS and the hybrid systems. Finally, we find that these CO2 control policies are progressive in that higher incomes households bear a bigger burden.Link

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Trade Shifts Pollution More than Regs Shift Trade

Trade Shifts Pollution More than Regs Shift Trade. Joseph Aldy, September/October 2018, Paper, “Burning coal to power manufacturing
contributes to premature mortality in the United States and in developing countries alike. Despite stringent environmental regulations, U.S. coal-fired power plants still cause tens of thousands of early deaths each year. Any factor that causes manufacturing activity to shift from the United States to other countries can also shift the demand for coal-fired power — and its pollution — to these other countries.Link

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Transition towards higher penetration of renewables: an overview of interlinked technical, environmental and socio-economic challenges

Transition towards higher penetration of renewables: an overview of interlinked technical, environmental and socio-economic challenges. Michael McElroy, August 24, 2018, Paper, “Investment for renewables has been growing rapidly since the beginning of the new century, and the momentum is expected to sustain in order to mitigate the impact of anthropogenic climate change. Transition towards higher renewable penetration in the power industry will not only confront technical challenges, but also face socio-economic obstacles. The connected between environment and energy systems are also tightened under elevated penetration of renewables. This paper will provide an overview of some important challenges related to technical, environmental and socio-economic aspects at elevated renewable penetration. An integrated analytical framework for interlinked technical, environmental and socio-economic systems will be presented at the end.Link

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The missing money problem: incorporation of increased resources from wind in a representative US power market

The missing money problem: incorporation of increased resources from wind in a representative US power market. Michael B. McElroy, February 12, 2018, Paper, “The paper considers opportunities to reduce emissions of CO2 through increases in commitments to wind in a representative US power market. A model is applied to simulate market operations for different wind levels focusing on implications of the reduction in clearing prices arising due to increasing inputs of zero marginal cost power from wind, a dilemma referred to as the missing money problem. The resulting decrease in income poses problems for existing thermal and nuclear generating systems, at the same time making investments in wind uneconomic in the absence offsetting policy interventions.Link

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Reforming the Renewable Fuel Standard

Reforming the Renewable Fuel Standard. James Stock, February 2018, Paper, “The Renewable Fuel Standard (RFS) was established by the Energy Policy Act of 2005 and was substantially expanded as part of the Energy Security and Independence Act (EISA) of 2007. The goals of the program, and of US biofuels policy more broadly, are threefold: to enhance energy security through additional domestic production of biofuels, to support rural economies, and to promote second-generation transportation fuels with low life cycle greenhouse gas footprints.Link

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The Efficiency Consequences of Heterogeneous Behavioral Responses to Energy Fiscal Policies

The Efficiency Consequences of Heterogeneous Behavioral Responses to Energy Fiscal Policies. Joseph Aldy, December 2017, Paper, “The behavioral responses to taxes and subsidies are often subject to various behavioral biases and transaction costs—what we define as “microfrictions.” We develop a theoretical framework to show how these microfrictions—and their heterogeneity across the population and policy instruments—affect the design of Pigouvian policies. Standard Pigouvian pricing still holds with transaction costs, but requires adjustment with behavioral biases. We use transaction-level data from the US appliance market to estimate the heterogeneous behavioral responses to an array of energy fiscal policies and to quantify microfrictions. We then assess optimal fiscal policies and find that it is rarely optimal to couple a Pigouvian tax on energy with an investment subsidy in this context. We also find that energy labels—intended to increase the salience of energy information—can interact in perverse ways with both taxes and subsidies.Link

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Just transitions: A humble approach to global energy futures

Just transitions: A humble approach to global energy futures. Sheila Jasanoff, November 2, 2017, Paper, “Persistent mismatches between problems, policy framings, and solutions point to unsettled ethical conundrums in the ways that the energy transition is being imagined at the centers of global power. First, development is too often seen as the means to achieve more sustainable futures, even though experience points to complex and uncertain relationships between prosperity and sustainability. Second, while technological change is seen as essential to the transition, less attention is paid to the fact that disparities within societies demand differentiated solutions. Third, there are few principles in place for how to effect an energy transition with due attention to social justice in an unequal world. This article reflects on all three points.Link

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Reforming the U.S. coal leasing program

Reforming the U.S. coal leasing program. James Stock, December 2, 2016, Paper, “The article stresses the need for reform of the U.S. coal leasing program. Topics discussed include the social costs of coal extraction, the extent of substitution away from federal coal induced by raising additional leasing revenue and the lack of competition on the leasing auctions. Also mentioned are the incentives inherent in the leasing program structure of the U.S.Link

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Oil’s Plunge Has Created Opening For Carbon Tax

Oil’s Plunge Has Created Opening For Carbon Tax. Lawrence Summers, January 6, 2015, Opinion. “The case for carbon taxes has long been compelling. With the recent steep fall in oil prices and associated declines in other energy prices, it has become overwhelming. There is room for debate about the size of the tax and about how the proceeds should be deployed. But there should be no doubt that, given the current zero tax rate on carbon, increased taxation would be desirable…” Link

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