Found 27 article(s) for author 'environmental policy'

Climate Change, Climate Policy, and Economic Growth

Climate Change, Climate Policy, and Economic Growth. James Stock, July 1, 2019, Paper, “The topics of climate change and climate change policy encompass a complex mixture of the natural sciences, economics, and a mass of institutional, legal, and technical details. This complexity and multidisciplinary nature make it difficult for thoughtful citizens to reach their own conclusions on the topic and for potentially interested economists to know where to start. This essay aims to provide a point of entry for macroeconomists interested in climate change and climate change policy but with no special knowledge of the field. I therefore start at the beginning, with some basic background on climate change, presented through the eyes of an econometrician. I then turn to climate policy in the United States. That discussion points to a large number of researchable open questions which macroeconomists are particularly well-suited to tackle.Link

Tags: , , , ,

For International Cap-and-Trade in Carbon Permits, Price Stabilization Introduces Secondary Free-Rider-Type Problems

For International Cap-and-Trade in Carbon Permits, Price Stabilization Introduces Secondary Free-Rider-Type Problems. Martin Weitzman, June 7, 2019, Paper, “In this brief note (Without holding them responsible for errors, omissions, or interpretations, I am grateful for constructive comments on an earlier version of this note by Joseph Aldy, Severin Borenstein, Maureen Cropper, Carolyn Fischer, Meredith Fowlie, Lawrence Goulder, Geoffrey Heal, N. Gregory Mankiw, Michael Mehling, Gilbert Metcalf, Adele Morris, Ian Parry, William Pizer, Simon Quemin, Andrew Schein, Richard Schmalensee, E. Somanathan, Robert Stavins, David Victor, and Gernot Wagner.), I take the initial allocation of carbon emissions as a prototype international public goods problem. Overcoming the free-rider problem in carbon emissions is central to a successful comprehensive international climate-change agreement. Volunteerism alone may go part way, but is unlikely to fully adequately overcome this free-rider problem. (The numerical values of the pledged “Nationally Determined Contributions” under the Paris Agreement are voluntary, although the Paris Agreement itself may help constructively by laying a legal foundation for participation, reporting, verification, transparency, and trust.)Link

Tags: , , , , , , ,

Understanding and Overcoming Roadblocks to Environmental Sustainability. Past Roads and Future Prospects

Understanding and Overcoming Roadblocks to Environmental Sustainability. Past Roads and Future Prospects. Shawn Cole, 2019, Paper, “This working paper examines key barriers to business sustainability discussed at a multidisciplinary conference held at the Harvard Business School in 2018. Drawing on perspectives from both the historical and business literatures, speakers debated the historical success and future opportunities for voluntary business actions to advance sustainability. Roadblocks include misaligned incentives, missing institutions, inertia of economic systems, and the concept of sustainability itself. It appears that overcoming these roadblocks will require systematic interventions and alternative normative concepts.Link

Tags: , , ,

Transitioning to Long-Run Effective and Efficient Climate Policies

Transitioning to Long-Run Effective and Efficient Climate Policies. Robert Stavins, March 2019, Paper, “A combination of factors pose significant barriers to developing effective and efficient sets of policies to achieve long-run climate policy objectives. Political opposition to particular types of policy mechanisms (for example, GHG pricing) and the global, stock-pollutant nature of the climate problem are among the major factors posing practical policy challenges. Effective and efficient climate policy is needed in the long run to meaningfully address the climate problem, making the design of transitions to such long-run policies from the current portfolio of policies an important task for policymakers.Link

Tags: , ,

What Green New Deal advocates can learn from the 2009 economic stimulus act

What Green New Deal advocates can learn from the 2009 economic stimulus act. Joseph Aldy, February 15, 2019, Opinion, “Congressional Democrats have introduced a “Green New Deal” proposal that calls for a 10-year national mobilization to curb climate change by shifting the U.S. economy away from fossil fuels. Many progressives support this idea, while skeptics argue that a decade is not long enough to remake our nation’s energy system.Link

Tags: , , , , ,

The Economic Implications of a Low-Carbon Future

The Economic Implications of a Low-Carbon Future. Joseph Aldy, January 2019, Paper, “What are the costs and benefits of reducing the carbon intensity of the U.S. economy? The economic costs of decarbonization reflect the stringency of climate policy goals—how ambitious is the objective and how quickly must the economy meet it—and the responsiveness of investment and consumption to new policies and associated price signals. The more low-cost opportunities for switching to lower- and zero-carbon energy sources and the more options for energy efficiency and conservation, the lower the cost of any decarbonization goal. The costs will also reflect a number of critical policy design choices that will affect the cost-effectiveness of reducing carbon emissions, the creation and use of economic value (such as carbon tax revenues) that could promote economic growth, and the potential for innovation policy to complement emission mitigation policy.Link

Tags: , , , ,

Understanding and Overcoming Roadblocks to Environmental Sustainablity. Past Roads and Future Prospects

Understanding and Overcoming Roadblocks to Environmental Sustainablity. Past Roads and Future Prospects. Shawn Cole, January 15, 2019, Paper, “This working paper examines key barriers to business sustainability discussed at a multidisciplinary conference held at the Harvard Business School in 2018. Drawing on perspectives from both the historical and business literatures, speakers debated the historical success and future opportunities for voluntary business actions to advance sustainability. Roadblocks include misaligned incentives, missing institutions, inertia of economic systems, and the concept of sustainability itself. It appears that overcoming these roadblocks will require systematic interventions and alternative normative concepts.Link

Tags: , , , ,

Do financial constraints curb firms’ efforts to control pollution? Evidence from Chinese manufacturing firms

Do financial constraints curb firms’ efforts to control pollution? Evidence from Chinese manufacturing firms. Richard Freeman, January 12, 2019, Paper, “Financial constraints have long existed in China’s manufacturing sectors. The growth of the manufacturing sector has been slowing in recent years due to increasingly strict environmental regulations that force factories to cut production. In this study, we discussed whether financial constraints were essential in firms’ decision to control pollution, and matched the Annual Surveys of Industrial Firms dataset with the Ministry of Environmental Protection survey data on firms’ expenditures in industrial waste gas emission control. The relationship between calculated investment-cash flow sensitivity (ICFS) and the environmental investment ratio (ratio of firms’ expenditures on pollution control to total assets) was analyzed. We found that, overall, financial constraints had a significantly negative effect on firms’ efforts to reduce waste gas emission.Link

Tags: , , , , , , , ,