As states advance their climate policies with ambitious clean energy targets, wholesale market operators are grappling with questions about if and how electricity markets should evolve as a response. Several ISO/RTOs are looking to change their market rules to include carbon pricing, but there is a diversity in approaches.
This article examines the intricacies of environmental credit generation from concentrated animal feeding operation (CAFO) farm systems. This article describes the stacking problem and explores possible solutions, such as temporal constraints on credit issuance and discounting credits to account for additionality problems.
Testimony Before the Subcommittee on Environment & Climate Change of the U.S. House Committee on Energy & Commerce
Nicholas Institute Executive Director Tim Profeta testifies before the Subcommittee on Environment & Climate Change of the U.S. House Committee on Energy & Commerce to suggest the best means by which to achieve economy-wide solutions to climate change. The central point of his testimony is that Congress should strongly consider a model that has been successfully proven through our nation’s history: the federal/state partnership.
This policy brief proposes that there may be another way to solve the failure of federal solutions to fight climate change. Instead of attempting to settle all concerns about a program’s costs and impacts at the federal level, simply let Congress determine the level of ambition needed to achieve our climate goals. And then use the state governments, which are more in touch with the equitable tradeoffs of their populations and directly accountable to their communities, to execute plans to reach those goals.
Getting to Yes: Internal Preparations—State Carbon Trading Checklist for a Meeting with the Governor
Public attention focuses on a policy once a governor makes a formal announcement and sets the debate in motion. However, much of the work happens before that moment, in conversations among state officials and their staff, and with key stakeholders. This memo is intended to support the work of “getting to yes” on a policy—in this case, a declining cap (and trade) program to reduce carbon dioxide emissions—once internal leadership has decided it is worth exploration.
The U.S. Mid-Century Strategy for Deep Decarbonization, released in November 2016, calls for the United States to reduce economy-wide greenhouse gas emissions 80% by 2050. A significant portion of those reductions are to come from the forestry and agricultural sectors. Those reductions will be more difficult and more expensive to achieve if the current U.S. forest sink is not maintained and the greenhouse gas impacts of agriculture are not addressed. This working paper seeks to address those two tasks, first, by presenting a cost distribution of various climate-smart agricultural and forestry practices and an analysis of the geographic distribution of such activities in the United States, and second, by offering policy recommendations to achieve deep greenhouse gas reductions.
The expansion of carbon markets in China, Japan, and the Republic of Korea have laid the foundation for discussions on potential carbon market cooperation within Northeast Asia, and the role of the private sector is vital for achieving success in this space, according to a new Asia Society Policy Institute and KPMG Samjong report. The authors present how carbon market linkage within China, Japan, and Korea could take place in unison with industry preferences.
This article in the journal AEA Papers and Proceedings reviews the policy context and initial program design of China’s new national emissions trading system. It explains the design of China’s new carbon market, contrasts it with western markets, and highlights possible implications. The article reflects some of the findings in the working paper “China’s New National Carbon Market,” published by the Nicholas Institute for Environmental Policy Solutions.
This analysis published in the journal Climate Change Economics examines impacts of nationally-imposed carbon taxes on different regions of the United States. The goal is to see what can be learned about the drivers of regional political support for and opposition to such measures. Whether at the state, regional or national levels, carbon taxes are one option for reducing greenhouse gas emissions; several state and regional programs are already under way and lowering emissions. This analysis uses a U.S. regional version of the Dynamic Integrated Economy/Energy/Emissions Model (DIEM) computable general equilibrium model to explore relationships between carbon taxes, emissions, and economic growth.
This analysis published in the journal Energy Economics examines how changes in market trends and technology costs are likely to affect electricity generation in the United States in the context of possible future carbon taxes. It uses the Dynamic Integrated Economy/Energy/Emissions Model (DIEM) electricity-sector model to examine a wide range of sensitivity cases for technology and fuel costs under different economic conditions. The model finds that carbon taxes can be an effective way to quickly lower emissions. Shifts among natural gas and renewable generation can vary significantly, depending on capital and operating costs.