carbon trading
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The real options for U.S. climate policy
The time has not yet come to throw in the towel regarding the possible enactment in 2010 of meaningful economy-wide climate change policy (such as that found in the Waxman-Markey legislation passed by the U.S. House of Representatives in June, 2009, or the more recent Kerry-Lieberman proposal in the Senate). Meaningful action of some kind […]
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Prices vs. contracts: Why good CO2 policy needs complex financial markets
Economic theory is predicated on the thesis that if supply and demand are allowed to freely set the price for a given item, rational capital allocation (and a host of other social benefits) will follow. Much of public policy is predicated on the truth of that thsis. But there’s a problem with the thesis: price […]
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Kerry-Lieberman climate bill: The details
Editor’s Note: Please bear in mind that this is a “first read” of a very large piece of legislation. It was researched and written within 24 hours of the bill’s publication. The Kerry-Lieberman climate bill emerged yesterday mid-morning, weighing in at 987 pages. (Hey, changing the entire energy economy ain’t easy.) Like the Waxman-Markey bill that […]
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Federal climate policy should preempt state and regional initiatives
In just a few days, Sens. John Kerry, Lindsey Graham, and Joe Lieberman will release their much-anticipated proposal for comprehensive climate and energy legislation — the best remaining shot at forging a bipartisan consensus on this issue in 2010. Their proposal has many strengths, but there’s an issue brewing that could undermine its effectiveness and […]
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Who killed cap-and-trade?
In a recent article in the New York Times, John Broder asks “Why did cap-and-trade die?” and responds that “it was done in by the weak economy, the Wall Street meltdown, determined industry opposition and its own complexity.” Mr. Broder’s analysis is concise and insightful, and I recommend it to readers. But I think there’s […]
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Myths and realities of cap-and-trade
Worries about “gaming” or market manipulation often crop up as objections to climate and energy legislation. While these concerns are understandable, they are not warranted — and they can be addressed in a well-designed system. So let’s look at some of the most common myths. Myth #1: Cap-and-trade markets have no track record. Reality: Cap-and-trade […]
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Grading RGGI’s first year
For all the haters who can’t abide cap-and-trade, I give you a new report by Environment Northeast, (ENE) grading RGGI — that’s the carbon cap-and-trade program that’s been operational for over a year now in the northeastern United States. I’m going to steal their thunder and take you right to the conclusion: States deserve significant […]
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Common Sense Regulations For Carbon Markets
With all the concern about carbon trading, it’s worth pointing out that there are some common sense solutions to the risk of carbon market manipulation. Foremost among these solutions is restricting trading to regulated exchanges (such as the Commodity Futures Trading Commission, which handled agricultural futures) and banning unregulated, or lightly-regulated, “over-the-counter” trading. In a later post, […]
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Getting at the roots of unsustainable U.S. ag policy
Cross-posted from Civil Eats. Around one third of global greenhouse gas emissions come from the way we produce, process, distribute, and consume the food we eat according to the Intergovernmental Panel on Climate Change (IPCC). Meanwhile, farmers the world over will be the most affected by climate change, as higher carbon in the atmosphere and […]
