Environmental Economics: Things I learned from the Heartland

October 19, 2010

Things I learned from the Heartland

I was at the Heartland Environmental and Resouce Economics (HERE) Conference at the University of Illinois, Urbana-Champaign this weekend. Some things I learned (in no paticular order):

The SO2 Cap'n Trade market is dead. I sorta knew this already, but I didn't know how dead. It's dead as in Elvis dead. You know, the public may not believe it yet, but insiders know that it was found on the bathroom floor after eating another peanut butter and banana sandwich. Or something like that. Anyway, what I really learned is that SO2 trading died as a result of a combination of incomplete design (in hindsight) and the always damnable legal and political system. The story goes something like this: The SO2 market was designed as if SO2 was a uniformly mixed pollutant. This made trading easier. One ton of SO2 in Ohio could be traded for one ton in Illinois. But, the impacts of each of those tons is different. Those states who absorbed a disproportionate impact from SO2 trading sued the EPA. Congress issued the Clear Air Interstate Rules limiting interstate trades of SO2. SO2 prices crashed. EPA lost the lawsuit: Must scrap the SO2 market and start over. SO2 market dies quietly. Is this the demise of Cap'n Trade? Can our environmental economics superhero be resurrected or has his archenemy, Sue, finally won? Have I taken this too far? Let's move on.
The drive from Columbus, Ohio to Champaign, IL is flat, straight and monotonous. The only break along the way are the potholes of Indianapolis that serve to rattle you awake.
If misery loves company, I was unloved Saturday night. I suffered the first half of the OSU-Wisconsin game alone in my hotel room.
Academic presentations are hard to listen to. Even without a headache.
Hoppy beers give me a headache.
There is a positive correlation between the amount of pollution a firm emits and the amount of money that firm spends on lobbying against environmental legislation. Shocking, I know.
My students are well-trained (Nice job Matt--the younger). I'm not claiming causality, just correlation.
Corn ethanol production to meet Renewable Fuel Standard mandates will take up a lot of land and raise food prices. Shocking, I know.
More people know me for the blog than for my real work. Typical introduction: "Hey, you're Tim Haab. I read your blog. John's really funny."

Posted by Tim Haab on October 19, 2010 at 08:22 AM in Research | Permalink

Comments

I was at the Heartland Environmental and Resouce Economics (HERE) Conference at the University of Illinois, Urbana-Champaign this weekend. Some things I learned (in no paticular order):

The SO2 Cap'n Trade market is dead. I sorta knew this already, but I didn't know how dead. It's dead as in Elvis dead. You know, the public may not believe it yet, but insiders know that it was found on the bathroom floor after eating another peanut butter and banana sandwich. Or something like that. Anyway, what I really learned is that SO2 trading died as a result of a combination of incomplete design (in hindsight) and the always damnable legal and political system. The story goes something like this: The SO2 market was designed as if SO2 was a uniformly mixed pollutant. This made trading easier. One ton of SO2 in Ohio could be traded for one ton in Illinois. But, the impacts of each of those tons is different. Those states who absorbed a disproportionate impact from SO2 trading sued the EPA. Congress issued the Clear Air Interstate Rules limiting interstate trades of SO2. SO2 prices crashed. EPA lost the lawsuit: Must scrap the SO2 market and start over. SO2 market dies quietly. Is this the demise of Cap'n Trade? Can our environmental economics superhero be resurrected or has his archenemy, Sue, finally won? Have I taken this too far? Let's move on.
The drive from Columbus, Ohio to Champaign, IL is flat, straight and monotonous. The only break along the way are the potholes of Indianapolis that serve to rattle you awake.
If misery loves company, I was unloved Saturday night. I suffered the first half of the OSU-Wisconsin game alone in my hotel room.
Academic presentations are hard to listen to. Even without a headache.
Hoppy beers give me a headache.
There is a positive correlation between the amount of pollution a firm emits and the amount of money that firm spends on lobbying against environmental legislation. Shocking, I know.
My students are well-trained (Nice job Matt--the younger). I'm not claiming causality, just correlation.
Corn ethanol production to meet Renewable Fuel Standard mandates will take up a lot of land and raise food prices. Shocking, I know.
More people know me for the blog than for my real work. Typical introduction: "Hey, you're Tim Haab. I read your blog. John's really funny."