Date | Topic/slides | Readings | ||||||||||||
*Note: If you prefer PDF over PPTX files you can convert for free without an account here. | *Note: To access certain readings you will need to be either (1) on the campus network or (2) using the library VPN Client with your UCD LoginID. |
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9/22 |
1. Introduction Slides |
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9/27 |
2. Evidence and impacts Slides |
IPCC
(Intergovernmental Panel on Climate Change). 2021. Summary
for Policymakers. In: Climate Change 2021: The Physical
Science Basis. Contribution of Working Group I to the
Sixth Assessment Report of the Intergovernmental Panel on
Climate Change [Masson-Delmotte, V., P. Zhai, A.
Pirani, S.L. Connors, C. Péan, S. Berger, N. Caud, Y. Chen,
L. Goldfarb, M.I. Gomis, M. Huang, K. Leitzell, E. Lonnoy,
J.B.R. Matthews, T.K. Maycock, T. Waterfield, O. Yelekçi, R.
Yu, and B. Zhou (eds.)]. Cambridge University Press,
Cambridge, United Kingdom and New York, NY, USA, pp. 3−32.
***NOTE: Starting with this class you will be asked to self-assess your level of preparation and contribution to small group discussions according to the table below.
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9/29 |
3. Evidence and impacts--Overview
(cont'd) and extreme events. Slides |
**Note: be prepared for the
same type of self assessment exercise as last class IPCC (2021) from above, continued:
Extreme events: Stott, P. 2016. How climate change affects extreme weather events. Science, 352(6293), 1517-1518.
Not assigned (yet) but recommended podcast, and likely to appear on your first essay assignment: Garfield, Bob. 2017. How
To Answer "Is This Caused By Climate Change?", On The Media, Podcast audio, March 10,
2017, http://www.wnyc.org/story/caused_by_climate_change. Other relevant papers: Popovich, Nadja. 2017. "From
Heat Waves to Hurricanes: What We Know About Extreme
Weather and Climate Change". New York Times,
September 15, 2017.
https://www.nytimes.com/interactive/2017/09/15/climate/does-climate-change-cause-hurricanes-drought.html. Diffenbaugh, Noah S. 2017. "How
We Know It Was Climate Change." New York Times,
December 29, 2017.
https://www.nytimes.com/2017/12/29/opinion/sunday/climate-change-global-warming.html |
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10/4 | 4. Social cost of carbon Slides Video (45min) |
Carleton, T., & Greenstone, M. (2021). Updating the United States Government's Social Cost of Carbon. University of Chicago, Becker Friedman Institute for Economics Working Paper, (2021-04). Focus on Sections I and II (pp. 1-27). In Section II, for each of the Seven Key Ingredients, there are 4 elements discussed: “Background”, “2010 IWG approach”, “Progress” and “Recommendation”. The “Progress” sections are interesting but sometimes long and technical so ok to skim these.
Optional/see also: IWGSCC (Interagency Working Group on Social Cost of Carbon) 2010. Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866. February. United States Government. Greenstone, M., Kopits, E., & Wolverton, A. 2013. Developing a social cost of carbon for US regulatory analysis: A methodology and interpretation. Review of Environmental Economics and Policy, 7(1), 23-46. Here' s a report by the IWGSCC, similar to the one that Greenstone et al. (2013) talk about, except that instead of the 2010 estimates they write about, this is the 2016 update (check out the table on page 4): IWGSCC (2016). Greenstone, M. and C. R. Sunstein. 2016. Donald Trump Should Know: This Is What Climate Change Costs Us. The New York Times, Dec. 15. This is a good short introduction to the social cost of carbon (SCC) and sets the initial political context of the Trump administration. Mooney, Chris. 2017. “New EPA document reveals sharply lower estimate of the cost of climate change.” Washington Post, October 11, 2017. This is a useful discussion of how the of the social cost of carbon (SCC) has become a political flash point and how its treatment has changed from the Obama to the Trump administration. |
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10/6 |
5. Discounting: General introduction - Slides, Video (38 min) |
1. Read these 7 pages: US Environmental Protection Agency (EPA) (2010). Guidelines for Preparing Economic Analysis, Chapter 6: Discounting Future Benefits and Costs, EPA 240-R-10-001. [The pdf I provided includes only the assigned pages (1:2, 7, 11-14)--the full chapter is here.]
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10/11 |
6. Carbon markets Slides Video (23 min: first 14:30 covered today, remainder next class) |
1. Krugman, P. 2010. Building a green economy. New York Times, April 11, 2010, p. MM34. --> Here's a PDF. Read the first half of the article (i.e., you can stop at the section "The Cost of Action". The rest of the article is useful but parts are dated. 1. Krugman states that "If there's a single central insight in economics, it's this: There are mutual gains from transactions between consenting adults." What does this mean and how does it relate to cap and trade? 2. What is Krugman's case for a "market-based solution" like cap and trade (or an emissions tax) over "telling people what will or will not be permitted" (command and control)? Newell, R. G., Pizer, W. A., & Raimi, D. 2014. Carbon Markets: Past, Present, and Future. Annual Review of Resource Economics, 6:191-215. Note: focus on these sections: 1-2, 3.1.3, 3.2.1, 4.3, 4.5, Table 1, Figures 1-2. (This is about 9 pages of reading.) 1. What does it mean for GHGs to be a "global, uniformly mixed pollutant"? How does this impact (1) the effectiveness of individual (versus global) action, and (2) the suitability of cap and trade as a policy instrument? 2. What is the definition of "cost-effectiveness" in the context of cap and trade and how does it depend on (as the authors say) "what, where and when flexibility"? -------------------- Optional: Here's a video on the basics of cap and trade in an international context from the Norwegian Ministry of Environment. --------------------- Optional: EPA's cap and trade basics -- no longer available |
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10/13 |
7. Carbon markets: offsets | Newell et al. (2014) from above: section 4.5 1. What's the point of building an offset scheme into a cap and trade program? 2. What does it mean for emissions reductions to be "additional" in the context of offsets? Schapiro, Mark. 2010. Conning the climate: Inside the carbon-trading shell game. Harper's Magazine, Feb. 2010, 31-39. 1. What's wrong with this claim on p. 33: "the (offset) systems' ultimate raison d'etre (is): to reduce greenhouse-gas emissions by channeling funds into cleaner technologies." 2. What seems to be the track record with respect to demonstrating additionality for offset projects under the CDM? |
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10/18 |
8. Morality and carbon markets: ethics of trading pollution rights Slides |
Sandel, M. J. 2012. What money can't buy: the moral limits of markets. Farrar, Straus and Giroux. (Excerpt covering tradable pollution permits and offsets, pp. 72-79). 1. What message does Sandel believe is conveyed by using government regulation (as opposed to tradable permits) to control pollution? 2. Buying the right to pollute does damage to which two norms? 3. Does Sandel believe that the effect of market instruments (like cap and trade) on norms implies that they are always a bad idea? McCloskey, D. N. 2012. The Poverty of Communitarianism, Book Review of What Money Can't Buy: The Moral Limits of Markets, by Michael J. Sandel. Claremont Review of Books XII(4), pp. 57-59. 1. According to McCloskey, what are Sandel's two key moral arguments? |
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10/20 |
9. California climate policy Slides Video (38 min) |
There are four short readings below--A through D--about 13 pages to read in total. A. CARB (California Air Resources Board). 2021. “Cap-and-Trade Program: Allowance Distribution Factsheet.” January 29, 2021. https://ww2.arb.ca.gov/sites/default/files/2021-01/CT_Allowance_FactSheet_Jan2021.pdf. 1. Governments like the state of California often specify GHG reduction goals using three numbers—what are these? 2. The GHG allowances that make up the cap from a given vintage year are split into four general groups. What are these and what is the logic for why they are part of the approach? B. CARB (California Air Resources Board). 2021. “FAQ Cap-and-Trade Program.” January, 2021. https://ww2.arb.ca.gov/sites/default/files/2021-05/nc-FAQ_CT_Jan2021.pdf. Start on p. 3 (“What are offsets?”). We’ll read/return to pp. 1-2 when we talk about EJ concerns later in the quarter. 1. What happens if the quantity of allowances that companies want to obtain at auction is less than the quantity being made available? 2. What happens if the quantity of allowances that companies want to obtain is so high that it sends the allowance price very high? C. CLEE (Center for Law, Energy & the Environment) (2022). “California Climate Policy Dashboard.” Berkeley Law at the University of California, Berkeley. Accessed April 24, 2022. https://www.law.berkeley.edu/research/clee/research/climate/climate-policy-dashboard/. 1. Scan the various “California Climate Programs”. Note: the set of GHG mitigation policies besides cap and trade are sometimes referred to as “complementary measures”. 2. Scan the various “California Climate Policies”. What policies underly California’s C&T program? Of the two main types of climate change policies, are these policies solely focused on mitigation? 3. Scan the various “California Climate Regulators”. What agency heads California’s GHG regulation? D. ========================================= Optional: A nice plain language overview and update on California's program: Lazo, Alejandro 2014. How Cap-and-Trade Is Working in California. The Wall Street Journal, Sept. 28. Burtraw, D., McLaughlin, D., & Szambelan, S. J. 2012. California's New Gold: A Primer on the Use of Allowance Value Created under the CO2 Cap-and-Trade Program. Resources for the Future DP, 12-23. 1. What exactly is "allowance value"? How is it generated? Who pays for it? 2. Why is it the case that giving permits to industry for free (instead of auctioning) won't necessarily keep firms from raising their prices? 3. What might California drivers expect to pay extra at the pump for gasoline when fuels are covered under the cap and trade policy? More detail on the evolution and passage of AB 32 and other GHG laws: Hanemann, M. 2008. "California's New Greenhouse Gas Laws." Review of Environmental Economics and Policy 2: 114-129. Useful reference for all things climate policy in CA: http://calcarbondash.org/ |
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10/25 |
10. Carbon mitigation policies and environmental justice |
Hernandez-Cortes, D. and Meng, K.C., 2022. Do environmental markets cause environmental injustice? Evidence from California’s carbon market. National Bureau of Economic Research, No. w27205, revision date Feb. 2022. This will be a challenging paper that we will read/discuss over two sessions. For today read from the beginning through the end of page 15 and the paragraph that spills over to page 16. 1. What is “market-induced spatial reallocation of pollution” and in what ways can it be desirable and undesirable? 2. What is a criteria air pollutant (CAP)? Is reducing CAPs part of the goal of California's greenhouse gas (GHG) market? 3. What are the summarized key findings (e.g. with respect to GHG/CAP emissions overall and to the environmental justice gap, including differences by California region)? ***Hernandez-Cortes and Meng (2022) uses regression analysis as the key statistical methodology. You might find it helpful to work through this introduction to regression analysis (with video and interactive data) to brush up on that approach. |
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10/27 |
11. Carbon mitigation policies & environmental justice, cont'd | A. Hernandez-Cortes and Meng (2022) continued: Read Section 5 and 6 (pp. 18-24 and 30). Within these pages, the “Robustness checks” section of pp.19-20 can be skimmed/skipped. Don’t forget to read the Conclusion (p. 30).
CARB (California Air Resources Board). 2021. “FAQ Cap-and-Trade Program.” January, 2021. https://ww2.arb.ca.gov/sites/default/files/2021-05/nc-FAQ_CT_Jan2021.pdf. We read this for CA policy above but skipped pp. 1-2--please read those 2 pages now. Note that the "2018 study from the University of California, Santa Barbara" is an earlier version of Hernandez-Cortes and Meng (2022). What is CARB’s position on whether the Cap-and-Trade Program has made worse the air quality in disadvantaged communities? Why is this a hard effect to identify? |
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Take-home midterm | The midterm will be available on the course website soon after the lecture above and you'll have about a week to complete it. There will be 3-4 separate/independent questions with a maximum length for the whole assignment similar to your written papers. |
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11/1 |
No class--time for working on midterm |
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11/3 |
Guest speaker: Derek Nixon Auctions and Market Unit Supervisor in the Air Quality Program for the state of Washington Department of Ecology |
Derek's work involves implementing elements of the State of Washington's Climate Commitment Act, which will kick off January 1, 2023. Washington’s new "cap-and-invest program" is the second economy-wide program in the US (after CA). ***Since our guest speaker is remote, this class will meet remotely on Zoom. |
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11/8 |
13. California electric vehicle policy |
Tal, G., Davis, A. and Garas, D. 2022. California's Advanced Clean Cars II: Issues and Implications. UC Davis Institute for Transportation Studies Working Paper UCD-ITS-RR-22-73, May 31. Available online: https://escholarship.org/content/qt1g05z2x3/qt1g05z2x3.pdf.
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11/10 |
12. U.S. politics and public attitudes Slides |
Krosnick, Jon A., and Bo MacInnis. 2020. Climate Insights 2020: Policies and Politics. Washington, DC: Resources for the Future, pp 1-37 (pages are sparse). HTML version. 1. The survey data was collected during the Covid-19 pandemic (May-Aug 2020). Does that seem to have influenced the responses? 2. What policies were most/least popular? 3. How do you explain the discrepancy between the support for GHG-mitigation policy in this report and lack of broad national U.S. policy to reduce GHGs? We will also read a few pages from Kull and Ramsay on attitudes towards recent policy developments (e.g. Paris Agreement). Read: pp. 2-5 and 11-15. Kull, Steven and Clay Ramsay. 2016. Considering the Cost of Clean: Americans on Energy, Air Quality and Climate. Program for Public Consultation, School of Public Policy, University of Maryland, pp. 1-32. Available at: https://cissm.umd.edu/sites/default/files/2019-07/Considering%20the%20Cost%20of%20Clean%20-%20050416.pdf. 1. What percentage of respondents overall approve/favor the Paris Agreement and how does this differ if we look separately at Democrats and Republicans? How do these levels compare with the same figures for the Clean Power Plan? %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Optional: * Krosnick,
J. A., & MacInnis, B. 2013. Does
the
American
Public Support Legislation to Reduce Greenhouse
Gas Emissions? Daedalus, 142(1), 26-39. * Popovich, Nadja and Livia Albeck.
2017. How
Republicans
Think About Climate Change — in Maps. New York
Times, December 14, 2017. * 2018 Gallup
polling * See this website with fantastic U.S. maps decomposed to the state/county/district level for various climate questions from the Yale Project on Climate Change Communication. |
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11/15 |
Guest speaker: Jordan Ramalingam Slides |
Jordan earned his bachelor's degree from UC Davis in the Environmental Policy Analysis & Planning program in 2016. He is now a Manager at California Air Resources Board (CARB) in the Alternative Fuels Section of the Industrial Strategies Division. He works with (1) the Low Carbon Fuel Standard group (2016-present) as lead staff member, responsible for informing long-term policy design of the program and aligning policy signals with CARB's broader climate and air quality targets; and (2) Carbon Neutrality Planning and Modeling (2019-present) to chart the path to statewide carbon neutrality by 2045 (e.g. by gathering information from workshops and other multi-agency efforts to inform the path to carbon neutrality for the next statewide Climate Change Scoping Plan). ***Our guest speaker will be onsite in our regular classroom (not remote). |
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11/17 |
14. U.S. Climate Policy |
Mahajan, Megan, Olivia Ashmoore, Jeffrey Rissman, Robbie Orvis and Anand Gopal. 2022. Updated Inflation Reduction Act Modeling Using the Energy Policy Simulator. Energy Innovation Policy & Technology LLC, August 23. Available online: https://energyinnovation.org/publication/updated-inflation-reduction-act-modeling-using-the-energy-policy-simulator/.
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11/22 |
15. International climate policy agreements Slides |
Stavins, Robert N. 2021. The Biden Administration and International Climate Change Policy and Action Lawfare, January 14, 2021. (About 6 pages)
Calliari, Elisa and D'Aprile, Aurora and Davide, Marinella, Unpacking the Paris Agreement (February 4, 2016). Review of Environment, Energy and Economics (Re3) February, 2016, Available at SSRN: https://ssrn.com/abstract=2740429.
Optional: For an update relative to the Jan 2021 article above see the post "What Happened in Glasgow at COP26?" also by Stavins. Optional: The Climate Action Tracker -- up to date assessment of country commitments and their sufficiency for reaching global goals. |
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11/24 |
No class -- Thanksgiving |
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11/29 |
Guest speaker: Dr. Austin Brown (CV, LinkedIn) |
Dr. Austin Brown holds a Ph.D. in Biophysics from Stanford University. Prior to 2017, Dr. Brown spent nine years in Washington, DC, working for the Department of Energy, the National Renewable Energy Laboratory, and as Assistant Director for Clean Energy and Transportation at the White House Office of Science and Technology Policy in the Obama Administration. In 2017 he came to UC Davis to serve as the Executive Director of the Policy Institute for Energy, Environment, and the Economy. During his time at UCD, Dr. Brown worked to build connections between the research, policy, and business communities at the local, state, and national levels with a focus on equitable clean energy and sustainable transportation. Since September 2021 he has served as the Senior Director for Transportation Emissions, White House Office of Domestic Climate Policy. ***Since our guest speaker is remote, this class will meet remotely on Zoom. |
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12/1 |
16. International climate policy agreements -- Environmental justice |
Carlarne, C.P. and Colavecchio, J.D., 2019. Balancing equity and effectiveness: The Paris agreement & the future of international climate change law. New York University Environmental Law Journal, 27, p.107-182. Read 107-137 and skim 146-156 (to get a sense of individual country approaches to NDCs)
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Take home final | The final will be * posted no later than midnight on the last day of regular classes, and * due on Canvas by our scheduled final time. |
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Old topics/papers no longer covered: |
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6. Optimal mitigation policy: Big bang versus
the policy ramp Slides Video (48 min) |
1. Read this
4-page summary of the Stern Review (see the link to the full
report to follow any threads of interest). "Summary of Conclusions" excerpt (pp. vi - ix) from the Stern Review: Stern, N., Peters, S., Bakhshi, V., Bowen, A., Cameron, C., Catovsky, S., Crane, D., Cruickshank, S., Dietz, S., Edmonson, N., Garbett, S.-L., Hamid, L., Hoffman, G., Ingram, D., Jones, B., Patmore, N., Radcliffe, H., Sathiyarajah, R., Stock, M., Taylor, C., Vernon, T., Wanjie, H., & Zenghelis, D. 2006. Stern review: the economics of climate change. London: HM Treasury.
Krugman, P. 2010. Building a green economy. New York Times, April 11, 2010, p. MM34. --> Here's a PDF.
-------------------------- Optional: Video update to Stern review (see transcript and slides): Stern, N. 2013. "Economic growth, poverty reduction and managing climate change." From IMF and WRI presentation on April 2, 2013. Posted by E&E TV April 4, 2013. |
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7. Policy ramp cont'd |
Nordhaus, W.
2007. "Critical
assumptions
in the Stern Review on climate change." Science 317,
201-202. 1. How does Nordhaus express the stringency of his policy ramp ("DICE baseline") versus the big bang approach of the Stern review? In these terms, how much more stringent is the Stern recommendation? 2. What is the economic logic of the policy ramp? -------------------------- Optional: Nordhaus, W. 2016. DICE-2016R Model in MS Excel. |
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14. Fossil fuels Slides |
Covert, T.,
M. Greenstone, and C.R. Knittel. 2016. Will
We Ever Stop Using Fossil Fuels? Journal of
Economic Perspectives 30(1), 117-138.
Energy Information Administration [EIA] (2021) Annual Energy Outlook 2021 with projections to 2050. February 3, 2021, Washington DC. -->Just focus on: pages (as marked on the bottom right of the page) 1-3 and understanding figures 3, 4, 11 and 18. |