Economic analyses of climate change policies frequently focus on reductions of energy-related carbondioxide emissions via market-based, economywide policies. The current course of environment andenergy policy debate in the United States, however, suggests an alternative outcome: inefficientlydesigned and/or sector-based policies. This paper uses a collection of specialized, sector-based models inconjunction with a computable general equilibrium model of the economy to examine and compare thesepolicies at an aggregate level. We examine the relative cost of different policies designed to achieve thesame quantity of emissions reductions. We find that excluding a limited number of sectors from aneconomywide policy does not significantly raise costs. Focusing policy solely on the electricity andtransportation sectors doubles costs, however, and using nonmarket policies can raise costs by a factor of10. These results are driven in part by, and are sensitive to, our modeling of preexisting tax distortions.
Resources Radio — Aug 31, 2021
Cracking the Case of the Vanishing Air Pollution Data, with Eric Zou
Eric Zou contends that local governments have the opportunity and incentive to behave strategically when monitoring and reporting poor air quality.
Policy Leadership Series — Aug 30, 2021
Policy Leadership Series with EPA Administrator Michael Regan
A conversation with the 16th Administrator of the Environmental Protection Agency about the goals he has set during his first year as the head of the agency
Journal Article — Jul 8, 2021
The GDP-Temperature Relationship: Implications for Climate Change Damages
Two RFF researchers coauthor this journal article evaluating the effect of temperature due to global warming on GDP.