Climate & Energy

Carbon policy details: Part 5

The solution: Output-based standards

This is the fifth and final post in a series on the details required to get carbon policy right. See also parts one, two, three, and four. So far, I've done a lot of complaining -- which, in and of itself, is just, well ... whiny. Here, then, is a solution. First, a very brief review: A test of good carbon policy is whether it encourages the private sector to invest capital in projects that will reduce GHG emissions. "Additionality" confuses carbon policy, by preferentially shifting investment toward less economic GHG-reduction technologies. Carbon taxes provide sticks without carrots, and thereby provide no direct incentive to those who might otherwise use carbon pricing to invest in projects that lower GHG emissions. Long-term carbon pricing is necessary to encourage private sector investment. Spots alone will not. Although not covered in this series, it bears repeating that auctions trump allocation. Unfortunately, virtually all of the GHG-reduction strategies currently in existence (e.g., Kyoto, RGGI) or being contemplated (e.g., Lieberman-Warner, California AB 32) fail one or more of the prior tests. Moreover, all those actual/proposed bills are really complicated, with many moving parts that are rife for gaming -- or, more charitably, significant legislative error. Here, then, is a better approach: output-based GHG regulation.

Porsche launches legal challenge to London’s congestion fee increase

German automaker Porsche has launched a formal legal challenge to London Mayor Ken Livingstone’s scheduled tripling of the city’s congestion fee for the most-polluting vehicles. The increase, slated to take effect in October, would raise …

Obama says he’d consider Gore for climate post in his administration

Democratic presidential candidate Barack Obama said at a town hall meeting in Pennsylvania yesterday that he would consider asking former vice president and current climate superstar Al Gore to assume a cabinet-level position in his …

Hoffert and Pielke: <del>Best Friends</del> Breakthrough Fellows Forever

Shame on Nature for quoting Hoffert on behalf of Pielke without noting they’re colleagues!

Suppose the prestigious journal Nature published an analysis of mine that they knew many people would disagree with. How would you feel if Nature then ran accompanying commentaries for and against my analysis, including another Senior Fellow from the Center for American Progress raving about how important and brilliant it was? You'd probably think that was kind of lame of them. Now suppose the Nature article never mentioned that I was a CAP Senior Fellow or that my mysterious admirer was, too. No way, you say. No way a journal like Nature would ever do that. That would be like The New York Times asking a CAP Fellow to review my book and not mentioning the connection. Few things could be more inappropriate for a major publication. I have one word for you: "way!"

Notable quotable

“I wouldn’t be at all surprised to see a lull in new [coal] plant development.” – Dynegy Chief Executive Officer and #5 Fossil Fool Bruce Williamson, commenting on the fact that “environmental opposition is making …

More reasons to love Lieberman-Warner

CAP article says it promotes the transition to clean energy

A new article by the Center for American Progress makes clear that the Lieberman-Warner Climate Security Act [PDF], S. 2191, would be a boon to affordable, job-creating renewable energy. The article, by CAP's Daniel J. Weiss and Alexandra Kougentakis, explains how the bill would ... ... make significant reductions in the carbon dioxide pollution that causes global warming as well as turbo charge investments in clean energy technologies such as wind, solar, and geothermal. It would provide direct assistance for renewable energy, as well as create economic incentives for utilities to invest in clean, carbon-free energy technologies instead of continued reliance on dirty fossil fuels. The boost for renewable energy would create thousands of new jobs in the clean energy industry. The article also points out this: The EPA just released a study that found that the bill's global warming pollution reductions would have almost no effect on long-term economic growth, and only a small effect on electricity prices and jobs. The same claims that opponents are making now were made about the acid rain control program 20 years ago -- claims that were all proven wrong. The CAP article discusses the bill at length and how it would affect renewable energy and job creation in this country. It is well worth reading. This post was created for ClimateProgress.org, a project of the Center for American Progress Action Fund.

Algal update

Texas forum on what’s new, April 10

For the interest of those who haven't given up entirely on biofuels, I humbly present the National Algae Association forum in Texas on April 10. This meeting will serve as an update on what's new in this promising branch of the nascent sustainable biofuel movement: biodiesel from cultured algae (outside of biodiesel from waste oil, that is). This week's Renewable Energy World podcast had an interesting interview with the principal of one algae-fuel company, Solix Biofuels. Like all the companies, they have a whole array of challenges to figure out, from competitor algae to stress regimes that are optimal for producing oil. It's actually tough to grow algae -- who knew?

Joe Barton: Pork lover

Joe Barton (R-Texas) spoke to the U.S. Energy Association yesterday and made it clear ($ub req'd) that he's going to do everything he can to block cap-and-trade legislation from coming out of Congress: As the Democrats move to pass climate change legislation this year, Rep. Joe Barton, R-Texas, will be there to fight them, he told the U.S. Energy Assn's annual membership meeting yesterday. As a senior member of the House Energy Committee, that's not a threat to be taken lightly. So why is he opposed? As justification, he cites both his passion for economic stewardship and his scientific judgment:

EPA sued over its procrastination

Seventeen states and 11 green groups have sued the U.S. EPA for not yet having made a decision about whether it will regulate greenhouse gases. The lawsuit was filed Wednesday, exactly one year after the …

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