Climate Change Economics

The state of climate science does not justify extreme actions to address improbable impacts.  Alarmist global warming predictions, derived from computer models, are being misused to support policy advocacy goals, with goal of wholesale change in the energy system.  An objective review of the available information leads instead to a conclusion that significant unknowns and uncertainties remain in our understanding of the climate and the potential impact of change.  Uncertainty is not justification for inaction; it is a reason for prudence and flexibility.

The contemporary political dynamics of climate policy have shifted, substantially increasing the likelihood of forceful regulatory approach.  The Supreme Court?s expansive ruling in Massachusetts v. EPA opened the possibility for mandatory federal regulation of greenhouse gas emissions.  Serious consideration of a national cap-and-trade program followed.

Like the Kyoto Protocol on which it is modeled, cap-and-trade proposals would set a limit on allowable greenhouse gas emissions and reduce that limit over time.  Permits allowing emissions of a certain level are issued to or purchased by identified industries or utilities, who could sell any extras they possessed.  A cap-and-trade system is in place in Europe, but that system has proven costly and not produced the environmental return advocates claimed it would.  Cap and trade programs are complicated to craft and manage, will impose enormous costs on American families, and are prone to abuse.  Comparisons with alternative policy approaches to controlling GHG emissions show cap-and-trade proposals to be more expensive than known alternatives. 

Climate Change Economics

• "Understanding the Political and Economic Realities of a Carbon Tax," William O'Keefe, Dr. David W. Kreutzer and Scott Segal, May 3, 2013
• "Electric Cars: Not Ready for Prime Time," William O'Keefe, December 16, 2010
• "The Dismal Economics of Climate Regulation," Jeff Kueter, September 1, 2009
• "Waxman-Markey Costs More Than A Postage Stamp," Rachel Schwartz, August 1, 2009
• "Assessing the Economic Consequences of Cap-and-Trade Proposals to Regulate GHG Emissions," June 4, 2009
• "Assessing Low Carbon Fuel Standards: Implications of New Congressional and State Efforts to Cap Carbon in Gasoline," Dr. Michael E. Canes and Dr. Edward H. Murphy, April 16, 2009
• "Next Bernie Madoff? Emissions Cap-and-Trade Aids the Corrupt, Hurts the Little Guy," William O'Keefe, April 13, 2009
• "Economics of a National Low Carbon Fuel Standard," Dr. Michael E. Canes and Dr. Edward H. Murphy, April 2, 2009
• "The Cost of Climate Regulation for American Households," Bryan Buckley and Dr. Sergey Mityakov, March 2, 2009
• "Cap & Trade Realities for CO2 Emissions," Don Dears, June 1, 2008
• "Caps, Taxes and Technology - How Do We Respond to Climate Change," William O'Keefe and Jeff Kueter, November 1, 2007
• "Major Economies Can Set the Course for Post-Kyoto Policy," September 27, 2007
• "Marshall Institute Report on Cap and Trade Profiled on E&E TV," July 26, 2007
• "Cap & Trade is the Wrong Policy to Curb Greenhouse Gases for the United States," Dr. Michael E. Canes, July 20, 2007
• "Is Cap & Trade the Wrong Policy to Curb Greenhouse Gases for the United States?," Dr. Michael E. Canes, July 20, 2007
• "Why Cap & Trade is the Wrong Policy to Curb Greenhouse Gases for the United States," Dr. Michael E. Canes, July 20, 2007
• "A Comparison of a Cap & Trade System v. Alternative Policies to Curb U.S. Greenhouse Gases," Dr. Michael E. Canes, February 22, 2007
• "Guardian's Accusations False: Corporate Interests Do Not Influence Institute Positions," Jeff Kueter, September 20, 2006
• "A Cap and Trade System v. Alternative Policies to Curb U.S. Greenhouse Gases," Dr. Michael E. Canes, August 1, 2006
• "Are the IPCC's Global Warming Forecasts based on Faulty Economics?," Dr. David Henderson, November 19, 2004
• "The True Costs of the Climate Stewardship Act," William O'Keefe, September 1, 2004
• "Unraveling the Puzzle: Differing Economic Estimates of Climate Policy," Dr. Michael E. Canes, September 23, 2003
• "Cap and Trade: The Moral Equivalent of Bamboozle," William O'Keefe, March 1, 2003
• "The Kyoto Protocol Threatens European Economies," September 25, 2002
• "Candor about Kyoto," William O'Keefe, June 1, 2001
• "Our Best Response to Climate Change: Economic Growth," Jeffrey Marsh, March 21, 2000
• "Excessive Economic and National Security Costs to Result From Low Carbon Fuel Standards,"