Each week, we review the papers, studies, reports, and briefings posted at the “indispensable” RFF Library Blog, curated by RFF Librarian Chris Clotworthy.
A Carbon Tax in Broader U.S. Fiscal Reform
[From Foreward] This report by Adele Morris and Aparna Mathur, economists with the Brookings Institution and the American Enterprise Institute respectively, examines the issues and options for designing one type of carbon pricing mechanism—a carbon tax. The authors find that a $16 tax on carbon could raise more than $1.1 trillion in the first 10 years and more than $2.7 trillion over a 20-year period. A broader tax base that included emissions of other greenhouse gases (e.g., non-energy carbon dioxide and methane) would raise even more revenue. This mechanism could be included in a revenue-neutral tax reform bill that reduces taxes on productive activities, such as labor, investment and saving, by establishing a tax on harmful pollution… — via C2ES
Markets Matter: Expect a Bumpy Ride on the Road to Reduced CO 2 Emissions
[From a Climate Wire article by Tiffany Stecker, sub. req'd] U.S. EPA’s eagerly anticipated power plant rule could bar states from using the most cost-effective means for cutting greenhouse gases, an industry-backed paper finds… not all states are created equal, and not all market structures operate in the same way, said [managing editor of report, Cliff] Hamal. Some markets are regulated by public utility commissions, while others are not. Some utilities are vertically integrated — meaning they control the entire supply chain, from power generation to selling to the electricity customer. Other states’ utilities rely on wholesale electricity, meaning the electric company must buy it from power plants. This situation is likely to result in high prices to cut emissions and fewer incentives for utilities to make needed changes to lower carbon, said Hamal… — via Navigant
A State Tax Approach to Regulating Greenhouse Gases Under the Clean Air Act
The United States Environmental Protection Agency has begun the process of regulating greenhouse gas emissions using section 111 of the Clean Air Act (the Act). This authority extends to both new and existing sources of emissions. The agency’s first rule for existing sources of emissions, under section 111(d) of the Act, will apply to power plants (also called electric generating units, or EGUs). Power plant emissions comprise about one-third of US GHG emissions. There are currently 1,611 existing facilities that could be affected by the rule. The regulation could be one of the most economically significant rules ever promulgated. Subsequent rules will apply to other stationary sources such as oil refineries, chemical plants, and other industrial facilities. To date, EPA has issued only a few rules under section 111(d), because most pollutants are covered under other provisions of the Clean Air Act... — via Brookings Institution
A Bridge to Nowhere: Methane Emissions and the Greenhouse Gas Footprint of Natural Gas
In April 2011, we published the first peer-reviewed analysis of the greenhouse gas footprint (GHG) of shale gas, concluding that the climate impact of shale gas may be worse than that of other fossil fuels such as coal and oil because of methane emissions. We noted the poor quality of publicly available data to support our analysis and called for further research. Our paper spurred a large increase in research and analysis, including several new studies that have better measured methane emissions from natural gas systems. Here, I review this new research in the context of our 2011 paper and the fifth assessment from the Intergovernmental Panel on Climate Change released in 2013... — via Energy Science and Engineering
The Net Benefits of Low and No-Carbon Electricity Technologies
This paper examines five different low and no-carbon electricity technologies and presents the net benefits of each under a range of assumptions. It estimates the costs per megawatt per year for wind, solar, hydroelectric, nuclear, and gas combined cycle electricity plants. To calculate these estimates, the paper uses a methodology based on avoided emissions and avoided costs, rather than comparing the more prevalent “levelized” costs… — via Brookings Insitution
Discussion Draft of The State’s Choice Act — Would Permit State Carbon Taxes
[National Journal] Carbon-tax proposals are dead on arrival in Congress, but one lawmaker sees an opening to gain traction at the state level. Maryland Democrat John Delaney is circulating a draft bill that would let states impose a carbon tax as an option for complying with EPA’s upcoming carbon-emissions rules for existing power plants (or standards for other industrial-emissions sources that may be developed in the future). “Until Congress acts, these regulations are the only way to begin to respond to climate change before the effects are irreversible. My legislation is designed to give states the option to use an even more efficient method,” Delaney said in a statement... — via US House
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