economics

Worried about international competition? Another look at the Waxman-Markey cap-and-trade proposal

The potential impacts of proposed U.S. climate policies on the competitiveness of U.S. industries is a major political issue, and it was one of the key issues in the Energy and Commerce Committee of the House of Representatives in the design of Henry Waxman and Edward Markey’s H.R. 2454 (the American Clean Energy and Security […]

Robert Stavins Technology

News flash: More jobs and lower energy costs good for low-income Americans

Memo TO: U.S. Chamber of Commerce, National Association of Manufacturers, Heritage Foundation and other industry groups predicting the end of life as we know if America takes action on climate change FROM: Natural Resources Defense Council, Political Economic Research Institute/University of Massachusetts, Amherst, Green for All and the Center For American Progress Subject: Inconvenient New Study […]

Peter Altman Technology

CBO: Household costs under Waxman-Markey likely much lower than report reflects

Last Friday, the Congressional Budget Office answered some questions from Sen. John Kerry about its much-discussed report (PDF) on the costs of cap-and-trade. You’ll recall the report’s principle conclusion: a cap-and-trade program would reduce the deficit over the next decade. Despite that positive outcome, the report contained some scary numbers, like the fact that the […]

David Roberts Politics

Nobelist Krugman slams Reaganite Feldstein on global warming economics

Nobel prize-winning NYT columnist Paul Krugman has been doing some terrific writing on the economics of climate action (see Climate action “now might actually help the economy recover from its current slump” by giving “businesses a reason to invest in new equipment and facilities” and Krugman strongly endorses Waxman-Markey). Now he has turned his attention […]

Joseph Romm Technology

Martin Feldstein uses Washington Post op-ed page for cap-and-trade scare-mongering

Martin Feldstein is a conservative economist — a long-time advocate of supply-side, trickle-down economic policy and a leading advocate for Social Security privatization — so it’s no great surprise that he has taken to the pages of the Washington Post to characterize the Waxman-Markey climate and energy bill as “All Cost, No Benefit.” Feldstein has […]

David Roberts Politics

Understanding offsets

As the struggle to pass the Waxman-Markey climate-energy bill showed, there is a certain price any political system is willing to bear for climate action. In China, that price is low. In the United States, it is medium. And in Europe, it is relatively high. But in every system, there exist two primary ways to […]

Glenn Hurowitz Politics

So how much would a $20/ton carbon price really cost?

First I said that we shouldn’t confuse wealth transfers with economic pain. Then I said that a $20/ton carbon price works out to a 1.4 cent/kWh rate increase. Astute readers may have noticed a disconnect. (Isn’t 1.4 cents/kWh economic pain?) Which brings me to the third and final part of this little series. Carbon prices […]

Sean Casten Technology

Cap & trade: Carbon tax or wealth transfer?

It’s an article of faith that cap-and-trade will raise our energy costs, but it’s not necessarily true. The ubiquity of this faith makes clear that the Smart People who write, talk, and vote about CO2 policy don’t really understand the issues. A quick discussion, and then some math to clarify. There are two core problems […]