State Climate Policy Solutions For a new, stronger, clean energy economy State Climate Policy Solutions For a new, stronger, clean energy economy NCEL09.08.09.
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State Climate Policy SolutionsState Climate Policy SolutionsFor a new, stronger, clean energy economyFor a new, stronger, clean energy economy
State Climate Policy SolutionsState Climate Policy SolutionsFor a new, stronger, clean energy economyFor a new, stronger, clean energy economy
NCELNCEL09.08.0909.08.09
K.C. GoldenK.C. GoldenPolicy DirectorPolicy Director
NCELNCEL09.08.0909.08.09
K.C. GoldenK.C. GoldenPolicy DirectorPolicy Director
“We are addicted to oil”
Symptoms:
Economic hemorrhaging: $450 M per month in King County
Fever: increasing average temp is the least of it
“We are addicted to oil”
Symptoms:
Economic hemorrhaging: Over $450 M per month in King County
Fever: increasing average temp is the least of it
Acute national insecurity: “Paying for both sides of the war on terror”
Treatments for addiction• Gas tax holiday: Cheaper drugs• Drilling: Increase the supply of drugs
Quit: Steadily reduce dependence…..
….by building a clean energy economy….
CAP Policy commitment to steadily reduce fossil fuel dependence
…and a platform for launching a green economy
State policies:Climate plans
Maps from Pew Center
State policies:Renewable Portfolio
Standards
State policies:Vehicle GHG Standards
State policies:Commercial energy codes
Cap makes it real:Get your wedge
on!
Key principles for climate policy design
• EFFECTIVENESS
• EFFICIENCY
• EQUITY
Effectiveness - Scale
How much do we have to reduce climate pollution?
Enough to stabilize the concentration of GHGs in the atmosphere “at a level that would prevent dangerous anthropogenic interference with the climate system.”
How much is that?
Avoid increases in average global temperature of > 2 degrees C
How much is that?
Stabilize the concentration of GHGs at 350-450 ppm
So how much do we have to reduce climate pollution?
80% by 2050. More in the U.S.Avoiding Dangerous Climate Change – Cambridge University Press
Effectiveness - Scale
Effectiveness - Build
Effectiveness – Get going!
Efficiency
Equity
Internationally
DomesticallySectors, geographies,industries, economics
Equity – Green for all
Design issuesCap and trade vs. Carbon tax
Effectiveness: Quantity, not price, is the public policy imperative
Trade Tax Standard
s
Incentives
Investments
Design issues -- scope
More is better
• Effectiveness: Reduce more
• Efficiency: liquidity, simplicity
• Equity: not just point sources
Design issues – emission rights
Auction or give away?
• Effectiveness: rewards innovation; facilitates investment, consumer protection• Efficiency: simpler (baselines, early action) • Equity: avoids windfalls; level playing field
Design issues - Offsets
Limit them
• Effectiveness: discourages transformation
• Carbon storage in biomass not equivalent to emission reduction• Efficiency: verification is complex;
“additionality” – critical, but counterfactual• Equity: aggravates environmental justice concerns; intergenerational foul
Cap and trade works for acid rain
Annual Mean Wet Sulfate Deposition
1989-1991 2004-2006
Acid Rain SO2 Program Costs: Much Lower than Originally
Predicted
1990 1994 2004Source: EPA, 2006
Fossil fuel price politics
• Concern that climate policy will raise prices
• But prices are through the roof now!
• Why? Supply and demand.
• What drives the opposition?
It will reduce our consumption of fossil fuels
Public opinion• Public “favors” drilling• But they favor efficiency, renewables,
and climate solutions by wider margins• Bottom line:
Do something!
Why states?“Global” warming is a
local, state and regional issue
State Climate Policy SolutionsState Climate Policy SolutionsFor a new, stronger, clean energy economyFor a new, stronger, clean energy economy
State Climate Policy SolutionsState Climate Policy SolutionsFor a new, stronger, clean energy economyFor a new, stronger, clean energy economy
NCELNCEL09.08.0909.08.09
K.C. GoldenK.C. GoldenPolicy DirectorPolicy Director
NCELNCEL09.08.0909.08.09
K.C. GoldenK.C. GoldenPolicy DirectorPolicy Director
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