Environmental Economics

Another blog

Check out the Globalisation and the Environment Blog:

A place to find news, research and discussion on all issues related to the globalisation and environment debate.

More details on CA's GWSA

Do you like the acronym? The northeastern states agreement, RGGI, is pronounced "reggie." I'm pronouncing GWSA "gow-say." Catchy, huh?

From the WSJ (CA pact  ... $$$), information about the abatement target:

... California will mandate a reduction in the state's emissions of gases contributing to global warming to 1990 levels by 2020. The cut would target the state's biggest industrial emitters of greenhouse gases, such as power plants, oil refineries and cement factories. California already has passed a law requiring greenhouse-gas-emission cuts from cars and light trucks sold in the state.

/.../

California's goal is less ambitious than the cut envisioned in the Kyoto Protocol. Industrialized countries that ratified Kyoto have pledged to reduce their global-warming emissions a collective 5% below 1990 levels between 2008 and 2012. The U.S. has declined to ratify Kyoto, saying it would hobble the nation's economy. California's goal equates to cutting its emissions by 25% in 2020 below the level the state projects it would otherwise reach that year.

GWSA is less ambitious than Kyoto, sure, but not by much.

CA's Global Warming Solutions Act

Officials Reach Deal to Cut California Emissions:

California’s political leaders announced an agreement on Wednesday that imposes the most sweeping controls on carbon dioxide emissions in the nation, putting the state at the forefront of a broad campaign to curb the man-made causes of climate change despite resistance in Washington.

The deal between the Democratic-controlled Legislature and the Republican governor, Arnold Schwarzenegger, calls for a 25 percent reduction in carbon dioxide emissions by 2020, and could establish controls on the largest industrial sectors, including utilities, oil refineries and cement plants. The state has already placed strict limits on automobile emissions, although that move is being challenged in federal court.

The Bush administration has rejected the idea of similar national controls on carbon dioxide emissions, and efforts to get Congressional approval for such firm caps on emissions have repeatedly been defeated.

There are two big economic issues.

Gas Price Update

From the USAToday today:

The recent drop in prices at the pump could pick up steam, driving gasoline sharply lower in coming months, USA Today reported Wednesday. 

'We'll be closer to $2 than $3 come Thanksgiving,' Fred Rozell, a gas analyst at at the Oil Price Information Service, told the newspaper.

If that happens, prices will be inconsistent with a trend that started back in 1999.

Natural Capital: the newest (I think) environmental economics blog

Check it out at: http://envecon.wordpress.com/ (News, policy and research on the economics of the environment and natural resources). It's been around since January but I only recently happened across it. Below the fold is a recent post.

The best part is that the Environmental Economics blog is blog-rolled as "US Environmental Economics." Hereafter, we're changing our name to "The Best Damn Environmental Economics Blog, Period" with apologies to Fox Sports). And blog-rolling Natural Capital as LSE Natural Capital.

Just a joke, bloke!

Transitory income

A nice man dropped by my office last week and gave me $120. I immediately ordered Volume 2 of the Handbook of Environmental Economics from Amazon.com* (p=$135 -- I'll get the extra $15 from somewhere). I'm not going to read the massive tome,* I just want to see if any of my papers are in the references. Ha!

It arrived over the weekend and I, insecurely, did some serious scholarly research.

Don't question what I say--I'm probably taller than you

As a researcher, and now respected voluntary Internet columnist*, there comes a time when I have to defend my work to critics.  Now I have a new defense: 'I'm taller than you.' 

Two fairly tall Princeton economists have found that "on average, taller people earn more because they are smarter." 

Authentication back off

OK, we'll try again. 

Is religion the solution to environmental problems?

The Pope thinks it might be:

The world "is exposed to a series of risks created by choices and lifestyles that can degrade it," the leader of the Roman Catholic Church said in his Sunday sermon given at his summer residence of Castel Gandolfo, south of Rome.

"Damage to the environment makes the life of the poor on Earth particularly unbearable," the pope said, calling on all Christians to take care of the earth and not deplete its resources, sharing them in solidarity.

Varian on gas price variability

We used the second edition of Hal Varian's textbook, Microeconomic Analysis [3rd ed], in the advanced micro theory courses in graduate school. The word "Varian" still gives me shivers:

Anyway, these days he is writing a monthly Economic Scene article for the New York Times. The latest does a great job of explaining why gas prices move so fast in response to information (The Rapidly Changing Signs at the Gas Station Show Markets at Work, $$$):

THE recent gyrations in oil prices offer a textbook illustration of how financial markets and commodity markets interact.