Skip to main content

Standing Alone on Emission Reductions

washington_post_logo We admit were puzzled by Martin Feldstein’s op-ed on cap-and-trade in the Washington Post. Feldstein is a professor of economics at Harvard University, so he knows how to count up the beans, but his piece took a peculiar slice at cap-and-trade right up top:

Scientists agree that CO2 emissions around the world could lead to rising temperatures with serious long-term environmental consequences. But that is not a reason to enact a U.S. cap-and-trade system until there is a global agreement on CO2 reduction. The proposed legislation would have a trivially small effect on global warming while imposing substantial costs on all American households.

So, in other words, an American effort would cut emissions “trivially small” – if no other country participated. From this premise, Feldstein spins the rest of his argument:

Americans should ask themselves whether this annual tax of $1,600-plus per family is justified by the very small resulting decline in global CO2. Since the U.S. share of global CO2 production is now less than 25 percent (and is projected to decline as China and other developing nations grow), a 15 percent fall in U.S. CO2 output would lower global CO2 output by less than 4 percent.

Which we’ll assume is absolutely correct – if no other country participates. It’s fine, of course, for Feldstein to assume this as a basic premise, but it’s odd to assume as the sole scenario from which to draw conclusions. We know from looking at Congressional Budget Office and other projections that economists typically look at multiple scenarios – in this case, perhaps, the effect of cap-and-trade if China and India do participate, if they don’t but every other country does, etc. We’d really like to know what Feldstein would think then. The cost to the consumer remains the same, but presumably the social good would reach a point where Feldstein assigns it a higher worth. But where? 10% global reduction? 15%? Inquiring minds want to know.

So we’ll pass over this one lightly, since we may well be missing something. But if the Post asked Feldstein to write this, we expect the paper anticipated a more nuanced response then this.

Read the whole thing and see what you think.

Comments

Popular posts from this blog

Making Clouds for a Living

Donell Banks works at Southern Nuclear’s Plant Vogtle units 3 and 4 as a shift supervisor in Operations, but is in the process of transitioning to his newly appointed role as the daily work controls manager. He has been in the nuclear energy industry for about 11 years.

I love what I do because I have the unique opportunity to help shape the direction and influence the culture for the future of nuclear power in the United States. Every single day presents a new challenge, but I wouldn't have it any other way. As a shift supervisor, I was primarily responsible for managing the development of procedures and programs to support operation of the first new nuclear units in the United States in more than 30 years. As the daily work controls manager, I will be responsible for oversight of the execution and scheduling of daily work to ensure organizational readiness to operate the new units.

I envision a nuclear energy industry that leverages the technology of today to improve efficiency…

Nuclear: Energy for All Political Seasons

The electoral college will soon confirm a surprise election result, Donald Trump. However, in the electricity world, there are fewer surprises – physics and economics will continue to apply, and Republicans and Democrats are going to find a lot to like about nuclear energy over the next four years.

In a Trump administration, the carbon conversation is going to be less prominent. But the nuclear value proposition is still there. We bring steady jobs to rural areas, including in the Rust Belt, which put Donald Trump in office. Nuclear plants keep the surrounding communities vibrant.

We hold down electricity costs for the whole economy. We provide energy diversity, reducing the risk of disruption. We are a critical part of America’s industrial infrastructure, and the importance of infrastructure is something that President-Elect Trump has stressed.

One of our infrastructure challenges is natural gas pipelines, which have gotten more congested as extremely low gas prices have pulled m…

Nuclear Is a Long-Term Investment for Ohio that Will Pay Big

With 50 different state legislative calendars, more than half of them adjourn by June, and those still in session throughout the year usually take a recess in the summer. So springtime is prime time for state legislative activity. In the next few weeks, legislatures are hosting hearings and calling for votes on bills that have been battered back and forth in the capital halls.

On Tuesday, The Ohio Public Utilities Committee hosted its third round of hearings on the Zero Emissions Nuclear Resources Program, House Bill 178, and NEI’s Maria Korsnick testified before a jam-packed room of legislators.


Washingtonians parachuting into state debates can be a tricky platform, but in this case, Maria’s remarks provided national perspective that put the Ohio conundrum into context. At the heart of this debate is the impact nuclear plants have on local jobs and the local economy, and that nuclear assets should be viewed as “long-term investments” for the state. Of course, clean air and electrons …