Many advocates of environmental policy see the Trump administration’s view of the environment and the U.S. Environmental Protection Agency as a setback that dims the prospects for new and stronger environmental laws. Consequently, some state and local governments are picking up the slack. For example, California recently expanded its cap-and-trade program for greenhouse gases, and the mayor of Atlanta vowed to meet his city’s commitments to lower carbon dioxide emissions, despite the President’s decision to withdraw from the Paris climate accord. In this current complex landscape, economic theory can contribute valuable insight when designing climate and environmental policies at the federal, state, or local level. In particular, economic theory suggests that market-based environmental policies may provide clear advantages when compared to command-and-control policies. Let me explain why.
Air pollution not only threatens the future of our climate by significantly contributing to global warming, it also causes some of our most common illnesses, accounting for 1 in 8 deaths worldwide. It’s an invisible killer that is globally responsible for 36% of deaths from lung cancer, 35% of deaths from pulmonary disease, 34% of deaths from stroke, and 27% of deaths from heart disease, according to the World Health Organization (WHO).
Pervasive doom and gloom dominates much of the popular news about the environment. Global warming, sea level rise, ocean acidification, drought, wildfires, overfishing, or overpopulation—it all contributes to a feeling of despair and hopelessness, particularly among young people. This struck home for me on a personal level during a recent conversation with my college-aged son and a few of his friends—they felt they were “totally screwed” because of the inevitable impacts of climate change.
On August 3, 2015, the Obama administration announced the finalized US Environmental Protection Agency’s (EPA) “Clean Power Plan.” The plan has been developed under the Clean Air Act and aims to slash carbon emissions from US power plants, which account for one-third of all carbon emissions in the country, by giving each state an individual goal for cutting these emissions. The EPA estimates that the new national standards will significantly decrease carbon pollution produced by the electric sector by 2030; carbon emissions will be 32% lower than the 2005 levels. For a step-by-step guide on how the Clean Power Plan works, head here. Continue reading →