On May 12, 2010, Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) released details of their proposed American Power Act, a comprehensive energy and climate change bill developed over the ...preceding nine months by the two senators, chairmen of the Senate Foreign Relations and Homeland Security Committees respectively, along with Senator Lindsey Graham (R-SC).1 With US unemployment just below 10 percent and the sunken Deepwater Horizon drilling rig's ruptured well pouring thousands of barrels of oil into the Gulf of Mexico each day, the senators promised that if passed the bill will: (1) reduce US oil consumption and dependence on oil imports; (2) cut US carbon pollution 17 percent below 2005 levels by 2020 and over 80 percent by 2050; and (3) create jobs and restore US global economic leadership. In this policy brief the authors evaluate the effectiveness of the proposed American Power Act in achieving those goals.
On May 12, 2010, Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) released details of their proposed American Power Act, a comprehensive energy and climate change bill developed over the ...preceding nine months by the two senators, chairmen of the Senate Foreign Relations and Homeland Security Committees respectively, along with Senator Lindsey Graham (R-SC).1 With US unemployment just below 10 percent and the sunken Deepwater Horizon drilling rig's ruptured well pouring thousands of barrels of oil into the Gulf of Mexico each day, the senators promised that if passed the bill will: (1) reduce US oil consumption and dependence on oil imports; (2) cut US carbon pollution 17 percent below 2005 levels by 2020 and over 80 percent by 2050; and (3) create jobs and restore US global economic leadership. In this policy brief the authors evaluate the effectiveness of the proposed American Power Act in achieving those goals.
As the new Congress and President Obama take office, enacting a fiscal stimulus program is at the top of the legislative agenda. Because the size of this program may limit the scope for other ...legislative priorities and because US consumers' new-found propensity to save makes government spending a more attractive approach for economic recovery, policymakers are hoping to direct government spending in a way that not only generates short-term economic growth and employment but also addresses long-term policy goals. Energy security and greenhouse gas emissions (GHG) reductions are chief among these goals, and smart government investment in these areas can both create jobs today and lower the future cost of implementing long-term policies such as a cap-and-trade program or carbon tax. Trevor Houser, Shashank Mohan, and Robert Heilmayr consider twelve proposed "green" stimulus programs and examine the economic, environmental, and energy-security costs and benefits of these proposals using the Energy Information Administration's National Energy Modeling System and the Bureau of Economic Analysis's RIMS II multipliers. These proposals fall into three basic categories: energy efficiency investments, such as programs to refit federal buildings and weatherize homes; power generation programs, including extension of the production tax credit for renewable energy and the installation of "smart" meters; and transportation proposals, such as hybrid tax credits, funding for battery research and development, and mass transit expansion. They find that their twelve programs create an average of 30,100 job-years per $1 billion in government spending, comparing favorably with an average of 7000 job-years for every $1 billion in temporary tax cuts or 25,200 job-years per $1 billion in traditional infrastructure investment. These proposals also have a favorable impact on US GHG emissions and reduce US imports of oil and natural gas, but these effects are not significant enough to replace long-term policies in these areas. Rather, these policies can lay the groundwork for long-term policy goals, reducing the cost of implementing such policies down the road while at the same time spurring employment and helping to reverse the continuing economic downturn.
As the new Congress and President Obama take office, enacting a fiscal stimulus program is at the top of the legislative agenda. Because the size of this program may limit the scope for other ...legislative priorities and because US consumers' new-found propensity to save makes government spending a more attractive approach for economic recovery, policymakers are hoping to direct government spending in a way that not only generates short-term economic growth and employment but also addresses long-term policy goals. Energy security and greenhouse gas emissions (GHG) reductions are chief among these goals, and smart government investment in these areas can both create jobs today and lower the future cost of implementing long-term policies such as a cap-and-trade program or carbon tax. Trevor Houser, Shashank Mohan, and Robert Heilmayr consider twelve proposed "green" stimulus programs and examine the economic, environmental, and energy-security costs and benefits of these proposals using the Energy Information Administration's National Energy Modeling System and the Bureau of Economic Analysis's RIMS II multipliers. These proposals fall into three basic categories: energy efficiency investments, such as programs to refit federal buildings and weatherize homes; power generation programs, including extension of the production tax credit for renewable energy and the installation of "smart" meters; and transportation proposals, such as hybrid tax credits, funding for battery research and development, and mass transit expansion. They find that their twelve programs create an average of 30,100 job-years per $1 billion in government spending, comparing favorably with an average of 7000 job-years for every $1 billion in temporary tax cuts or 25,200 job-years per $1 billion in traditional infrastructure investment. These proposals also have a favorable impact on US GHG emissions and reduce US imports of oil and natural gas, but these effects are not significant enough to replace long-term policies in these areas. Rather, these policies can lay the groundwork for long-term policy goals, reducing the cost of implementing such policies down the road while at the same time spurring employment and helping to reverse the continuing economic downturn.
FORESTS TREVOR HOUSER; SOLOMON HSIANG; ROBERT KOPP ...
Economic Risks of Climate Change,
08/2015
Book Chapter
From the boreal forests of Alaska, to the California redwoods, to northeastern deciduous trees and south-eastern pines, forests span a third of total U.S. land area (about 750 million acres) and ...provide important natural and economic benefits. In economic terms, they provide valuable commodities like timber and bioenergy, recreational opportunities, and employment for local communities. The U.S. forest-products industry produces $200 billion in sales per year and employs about 1 million workers, generating an additional $54 billion each year in payroll (USDA 2013b). Although less easily quantified, forests also provide important ecosystem services including wildlife habitat, clean drinking water, flood
FROM IMPACTS TO ECONOMICS TREVOR HOUSER; SOLOMON HSIANG; ROBERT KOPP ...
Economic Risks of Climate Change,
08/2015
Book Chapter
What are the economic consequences of the climate impacts described in the preceding chapters? Rising sea levels, increased flooding, and more frequent and intense coastal storms damage capital that ...must be rebuilt. Changing yields affect the financial health of both agricultural producers and farming communities. Climate-driven changes in mortality rates shape overall labor supply, and temperature influences the productivity of that labor. Higher energy prices reduce real household income and raise business costs. Changes in crime rates affect property values and public expenditures on police and other security services. The costs of climate change will not be evenly spread throughout
COASTAL COMMUNITIES TREVOR HOUSER; SOLOMON HSIANG; ROBERT KOPP ...
Economic Risks of Climate Change,
08/2015
Book Chapter
Temperate climates, attractive scenery, ease of navigation, and access to ocean food supplies have put coastlines at the forefront of human development throughout history and around the world. The ...United States is no exception. Today, counties touching the coast account for 39 percent of total U.S. population and 28 percent of national property by value. Coastal living carries risk, particularly on the East Coast and along the Gulf of Mexico, where hurricanes and other coastal storms inflict billions in property and infrastructure damage each year. Climate change elevates these risks. Rising sea levels will, over time, inundate low-lying property and
WHAT WE MISS TREVOR HOUSER; SOLOMON HSIANG; ROBERT KOPP ...
Economic Risks of Climate Change,
08/2015
Book Chapter
Our analysis is broad, but it is far from complete. As discussed in chapter 1, we have only been able to quantify a subset of the economic risks of climate change in the United States. Figure 16.1 ...highlights some of the gaps. These gaps can be subdivided into several categories: incomplete coverage within included market impacts, omitted categories of market impacts, interactions between impacts, omitted nonmarket impacts, effects on international trade and security, out-of-sample extrapolation, and potential structural changes. Many of these limitations parallel those of benefit-cost “integrated assessment models” that lack the empirical calibration and spatial detail of our
