Environmental Economics

New carbon tax website

Check out the new Carbon Tax Center:

The Carbon Tax Center was launched in January 2007 to give voice to Americans who believe that taxing emissions of carbon dioxide — the primary greenhouse gas — is imperative to reduce global warming. Co-founders Charles Komanoff and Daniel Rosenblum bring to CTC a combined six decades of experience in economics, law, public policy and social change. CTC’s mission is to educate and inform policymakers, opinion leaders and the public, including grassroots organizations, about the benefits of and critical need for significant, rising and equitable taxes on carbon emissions from fossil fuels.

I've already signed up for the monthly e-newsletter! I'm giddy.

But beware, the carbon tax advocates are also self-described environmental advocates (not that there is anything wrong with that) which makes me wonder if their preference for a carbon tax over cap-and-trade is a desire to stick it to firms (one feature of an emissions tax relative to cap-and-trade ... at least when permits are not auctioned off).

Pay to park vs. pay to drive

I get mad when I read something like this:

Residents of a suburban London district will soon pay annual parking fees based on how much carbon dioxide their cars emit, penalizing owners of gas guzzlers.

...but maybe not for the reason you think*.

More on AERE pubs of enduring quality

We've already mentioned this year's winners of the AERE Publication of Enduring Quality Award (and the potential impact on longevity) but they never got their props.

Glenn Blomquist has gratiously let us use his description of these contributions. Read it while eating some banquet chicken and rice and you'll feel like you were actually in Chicago at the AERE luncheon (I would have also said watery tea but we only got water).

Here are the papers that every fisheries economist knows by heart:

H. Scott Gordon.  "The Economic Theory of a Common-Property Resource:  The Fishery" Journal of Political Economy 62, 2 (April 1954): 124-142.

Anthony Scott. "The Fishery:  The Objectives of Sole Ownership" Journal of Political Economy 63, 2 (April 1955): 116-124.

The fox will be guarding the chicken house

(OK, so that headline isn't really what's going on but it's close.) In every newspaper today is this story so it must be big (White House to Mold Rules):

WASHINGTON - President Bush has signed a directive that gives the White House much greater control over the rules and policy statements that the government develops to protect public health, safety, the environment, civil rights and privacy.

Just when I was starting to like KT Tunstall and The Killers

I've ranted before on using celebrity endorsements to further environmental (or any other) causes. Now, some of my favorite newish musicians (KT Tunstall, The Killers) are jumping onto the climate change mouthpiece trend. So I've decided, instead of fighting the trend, we here at Env-Econ need a celebrity spokesperson spokesmodel.  Someone who is willing to sit in front of a microphone and robotically spew the Env-Econ mantra.  OK, first we need a mantra.  Then we need a celebrity spokesperson spokesmodel.  The comment section below is now open for suggestions. 

Gas taxes and public choice

The Reason.org blog Out of Control is out of control (how many times do you think bloggers have used that line!). In a post dumping on Mankiw's Pigou Club they bring this:

Pigou has a theory that one can create optimal taxes to resolve externalities. Public choice theory demonstrates that the government's reach for optimality will always exceed its grasp.

In any social science, never say always (or never).

10 interesting economics blogs

Check out the Jan-Feb 2007 Milken Institute Review "lists" feature (page 96):

There are now literally thousands of blogs with some economic content, and dozens worth an occasional look. I find myself going back to these 10 (listed in no particular order) for a mix of fresh ideas, reality checks and even a bit of uneconomist-like passion.

...

Environmental Economics (www.env-econ.net)
Tim Haab (Ohio State) and John Whitehead (Appalachian State) specialize in natural resources and environment issues.

...

We can all thank Tim for the passion part ... Thanks Tim!

Green think tank

From the Grist List (Upward Mobility):

Greenhouse-gas reduction has become a theme of Exxon's advertising, and the company is participating in an analysis by green think tank Resources for the Future of government options for addressing climate change.

I'm wondering if the RFF-ers like to be called a "green think tank"?

Tortillas and the Theory of Second Best

If a government enacts a policy that messes with the workings of an otherwise efficiently working market, then it might be necessary to enact another policy to, at least partially, counteract some of the inefficiencies created by the first policy.  This is known in economic circles as the Theory of Second Best.  Three things should be noted about the Theory of Second Best. 

Krugman's reaction to the State of the Union

Re: Ethanol Economics (The Sum of All Ears - $$)

The only real substance was Mr. Bush’s call for a huge increase in the supply of “alternative fuels.” Mainly that means using ethanol to replace gasoline. Unfortunately, that’s a really bad idea.