ER291 Special Topics in
Energy & Resources
Climate Policy
Design
3 units, CCN: 27508
Thursday,
Fall Semester 2008, offered in alternate
years
UC-Berkeley, Energy Resources Group
Holmes Hummel, PhD
Overview: In order to
stabilize greenhouse gas concentrations, a wide variety of public policies are
needed to drive a rapid and large-scale energy technology transition. This course introduces essential design
concepts in contemporary climate policy deliberations and the policy-relevant technology research on which
the debates depend.
Topics covered in the course will include emission targets, strategies
for technology innovation and transformation, price-based mechanisms such as
cap-and-trade and carbon taxes, complementary non-price policies, and concepts
of justice that frame the political negotiations.
The class will involve readings, lectures,
short writing assignments, class discussion, and a research paper. Students should already have a basic
understanding of climate change science and of economics.
Prerequisites: ER100 and graduate student standing, or consent of instructor.
Materials: The class covers a wide range of contemporary academic articles and
policy analysis reports, all of which will be available at no cost through the
course bSpace website. Many assignments will be excerpts.
Class participation, writing assignments and
projects: Students
will be expected to write a one-page (500 words) response to the assigned reading
each week and post it to their Student Journal on bSpace by
Evaluation
Class participation: 20%
Reading reflections: 25%
Midterm exam: 20%
Project report: 35%
Office hours at ERG
By appointment, Wednesday and Thursday
10-12:00.
Other times on Thursday afternoons are
possible by request.
Course topics include:
·
Targets
and Timetables: Negotiating Scale and Speed
·
Charting
Energy Technology Paths to Climate Stabilization
·
Designs
for Cap-and-Trade, Carbon Fees: Devils in the Details
·
Ensuring
Cost Containment vs. Environmental Effectiveness
·
Terms
for Offsets: Negotiating Criteria for
Credit and Liability
·
Structure
and Influence of Scientific Review Mechanisms
·
Addressing
International Competitiveness Concerns
·
Leveraging
Complementary Policies
·
Climate
Justice: Integrating Sufficiency, Security, and Sustainability
·
The
Role of States in the Formulation of
·
International
Negotiations: From
Climate
science, adaptation policy, and political or legal theory are not
covered in this course.
Climate
policy design dilemmas persist at the international, federal, state, local and
corporate levels.
·
How
do these policy negotiations relate to each other?
·
How
are the terms of debate framed?
·
Who
decides – and how?
·
From
a technology perspective, what are the bottom lines and open questions in
high-stakes climate policy negotiations?
·
What
do emissions scenarios for climate stabilization imply about changes in energy
technology and policy over the career span of a graduate today?
·
What
types of policy-relevant technical research are needed to design key and
controversial measures under deliberation?
Climate
policy design involves interdisciplinary problem-solving to address concerns
about climate change impacts, economic development, technological feasibility, political
mobilization bias, international competitiveness, and climate justice. Taught through the perspective of a policy
analyst tasked with designing various aspects of a comprehensive response to
climate change, this course will draw on literature that reflects the latest
thought-leadership in the field.
With a
focus on U.S. climate policy development and links to both state and
international negotiations, ER291-002 will draw heavily on contemporary
proceedings, preparing students for professional engagement and providing ample
opportunity to explore timely research topics.
Students will gain fluency in the field by working with defining
documents for landmark policy designs such as:
·
California’s
Global Warming Solution Act, AB32
·
Lieberman-Warner
Climate Security Act, S2191
·
UNFCCC
Bali Roadmap and Action Plan
·
European
Union Emissions Trading System
·
Regional
Greenhouse Gas Initiative
·
Western
Climate Initiative
1. Framing the Challenge: Science,
Economics, Politics
2. Targets, Time Tables, and
Technology
3. Politics of a Durable Deal:
Justice as Realism
4. Essential Climate Policy Design
Elements: Case of California
5. Taking Action Without Addressing
the GHG Externality
6. Design Considerations for
Establishing a Market-Based Price to Address an Externality
7. Negotiating Cost Containment and Environmental
Effectiveness under a Cap-and-Trade Regime
8. Design Elements for a Pollution
Permit Market
9. Midterm Exam and Project Preparation
10. Policy Options and Political
Considerations for Spending Public Funds
12. TBD
13. Integration Challenges Across State,
Federal, and International Policies
14. Architecting an Apollo-Scale
Response to Climate Change
15. International Climate Negotiations
Week 1,
August 27th
Topics
Ø Intensifying climate impacts and
humanitarian crises
Ø More emphatic statements from science
and scientists
Ø Supreme Court rulings requiring policy
action
Ø State and local policy developments
Ø UNFCCC policy negotiations
Ø Emerging security concerns
Ø Confluence of energy price crisis and clean
energy technology surge
Ø Global trade and competitiveness
concerns
Ø Business formations: BELC + C3 + US
CAP vs. USCC + ACCCE +API
Ø Popular formations: 1Sky + CAN + Energy Action vs. ABEC and …?
Ø Ushering a clean energy technology
revolution through multiple levels of governance
Ø Climate policies as risk management
Management of climate risks includes managing
the risk that a climate policy will not be effective.
Reference reading – no
reading is required for first day of class; however, all are highly recommended
IPCC Working Group 1. (2007) Summary
for Policy Makers: The Physical Basis. Fourth Assessment Report of
the Intergovernmental Panel on Climate Change. 18.
IPCC Working Group 2. (2007) Summary
for Policy Makers: Impacts, Adaptation, and Vulnerability. Fourth
Assessment Report of the Intergovernmental Panel on Climate Change. 16.
Lavergne, R. et al. (2007) CO2
and Energy: France and Worldwide. General Directorate for
Energy and Raw Materials, and Mission Climat of Caisse des Dépôts. Paris,
France. 48.
Luers, et al (2006) Our
Changing Climate: Assessing the Risks to California. Sacramento:
California Energy Commission.
CEC-500-2006-077. 16.
CNA Military Advisory Board.
(2007) National
Security and the Threat of Climate Change. CNA Corporation:
Washington, DC. 35.
Background
Web Resources
·
A history of climate
change science www.aip.org/history/climate
·
Intergovernmental
Panel on Climate Change www.ipcc.ch/
·
U.N. Framework
Convention on Climate Change www.unfccc.int
·
Pew Center for
Global Climate Change www.pewcenter.org
·
Resources for the
Future www.weathervane.rff.org
·
Center for Climate
Strategies www.climatestrategies.us
·
California’s Climate
Change Portal www.climatechange.ca.gov
·
UC Berkeley Climate
Change links energy.berkeley.edu/climate.shtml
Week 2, September 4th
Topics
Ø
Negotiating climate risk and concepts of “danger”:
science and society
Ø
Emissions scenarios for climate stabilization
Ø
Crucial abstractions and assumptions in scenario
modeling
Ø
Essential technology innovation paths
Ø
Choosing a global long-term stabilization target
Ø
Choosing short-term emission reduction targets
[U.S. context]
Ø Scale, speed,
and stranded assets
Required Reading:
IPCC. (2007) Synthesis Report.
Fourth
Assessment Report of the Intergovernmental Panel on Climate Change. 22.
Bierbaum,
R., J. Holdren, M. MacCracken, R. Ross, P. Raven. (2007) Confronting
Climate Change: Avoiding the Unmanageable and Managing the Unavoidable. United Nations-Sigma Xi
Scientific Expert Group on Climate Change. UN Foundation: Washington, DC.
Executive
Summary (16 pgs)
Full Report,
Chapter on Mitigation: Pages 43-79
IPCC Working Group III. (2007) Summary for Policy Makers: Mitigation
of Climate Change. Fourth Assessment Report of the Intergovernmental
Panel on Climate Change.
Technical
Summary – skim report, and read pp 87-92 with care.
Deferred:
[Explanatory note on low emissions scenarios in the IPCC Fourth
Assessment Report, expected in Climatic Change.] Not yet released from
peer-review.
Krause, Bach and Koomey. (1992) “How much fossil
fuel can still be burned?” Energy Policy in the Greenhouse. pp 187-208.
(Scanned for posting on internal course website)
Hansen, J. et al. (2008) Target atmospheric
CO2: Where should humanity aim? Submitted to Open Atmospheric
Science Journal, last revised June 18, 2008.
Holdren, J. (2006) “The
Energy Innovation Imperative: Addressing Oil Dependence, Climate Change,
and Other 21st Century Energy Challenges,” Innovations,
Spring 2006, 3-23.
Skim this as an example of one of hundreds of scenario analysis reports
in the field. This happens to be one of the most thoroughly vetted multi-model
studies looking at both global and U.S. scales:
Clarke, L., J. Edmonds, H. Jacoby, H.
Pitcher, J. Reilly, R. Richels, 2007. Scenarios
of Greenhouse Gas Emissions and Atmospheric Concentrations.
Sub-report 2.1A of Synthesis and Assessment Product 2.1 by the U.S. Climate
Change Science Program and the Subcommittee on Global Change Research. Department
of Energy, Office of Biological & Environmental Research, Washington, D.C.,
USA, 154pp.
Reference reading:
Renewable Energy & Energy Efficiency
Hamrin J. and H. Hummel. (2007) Review of the Role of
Renewable Energy in Global Scenarios. International Energy Agency
Implementing Agreement on Renewable Energy: Paris, France. 79.
Kutscher, ed. (2007) Tackling Climate
Change in the U.S.: Potential Carbon Emissions Reductions from Energy
Efficiency and Renewable Energy by 2030. American Solar Energy
Society.
Carbon Sequestration
Intergovernmental Panel on Climate Change
(2005) Summary
for Policy Makers. IPCC Special Report on Carbon Dioxide Capture and
Storage. University of Cambridge Press.
Nuclear Power
Deutch and Moniz (2003) The Future of Nuclear Power.
MIT: Boston, MA.
Geoengineering
Crutzen (2006) Albedo enhancement by
stratospheric sulfur injections: A contribution to resolve
a policy dilemma? Climatic Change 77: 211-219. Plus Editorial Comments by
Cicerone,
Bengtsson, Kiehl, Lawrence, and McCracken:
220-242.
[Available via link through internal course
website to UC-Berkeley library]
Keith (forthcoming) Engineering
the Planet. In Climate Science and Policy. Schneider and
Mastrandrea, eds. Island Press. 1-11.
Technology
Implications of Scenario Analysis
Hummel, H. (2006) Interpreting Global Energy
and Emission Scenarios: Methods for Understanding and Communicating Policy
Insights. Dissertation, Interdisciplinary Program on Environment
and Resources, Stanford University. 482.
Parson, E., V. Burkett, K. Fisher-Vanden, D. Keith, L. Mearns, H.
Pitcher, C. Rosenzweig, M. Webster, 2007. Global
Change Scenarios: Their Development and Use. Sub-report 2.1B of
Synthesis and Assessment Product 2.1 by the U.S. Climate Change Science Program
and the Subcommittee on Global Change Research.
Department of Energy, Office of Biological & Environmental Research,
Washington, D.C. USA, 106 pp.
Caldeira, K., A.K. Jain, and M.I. Hoffert, Climate sensitivity
uncertainty and the need for energy without CO2 emission,
Science 299, 2052-2054, 2003. [Available through UC-Berkeley Library
online.]
Socolow & Pacala (2006) A Plan to Keep Carbon in Check.
Scientific American 295: 50-57.
Creyts, J. et al. (2007) Reducing
U.S. Greenhouse Gas Emissions: How Much at What Cost? McKinsey &
Co: New York, NY. 107.
Week 3,
September 11th
Topics
Ø
Climate justice: integrating sufficiency, security,
and sustainability
Ø
Coping with geopolitical instability
Ø
Common but differentiated responsibilities and
capacities to address climate change
Ø
Greenhouse Development Rights
Ø Environmental
justice concerns raised by Californians in climate policy debates
Required Reading:
United Nations. (1992) United Nations
Framework Convention on Climate Change. United Nations: New York,
NY. 25.
Baer, et al (2000) Equity and Greenhouse Gas
Responsibility. Science 289: 2287. 1.
[or Available via
link through UC-Berkeley Main Library.]
Gardiner (2004) Ethics and global climate
change. Ethics 114: 555-600. 6.
[Available via link
through UC-Berkeley Main Library.]
Baer, P., T. Athanasiou, and S. Kartha. (2008) Greenhouse
Development Rights. Second Edition. Berlin:
Heinrich Böll Foundation.
Hoerner and Robinson. (2008) A Climate of
Change: African Americans, Global Warming, and a Just Climate Policy for the
U.S. Environmental Justice and Cliamte Change
Initiative.
69.
http://www.ejcc.org/climateofchange.pdf
EJ Matters. (2008) The
California Environmental Justice Movement’s Declaration Against the Use of
Carbon Trading Schemes to Address Climate Change. 2.
United Nations Development
Program. (2007) Fighting
Climate Change: Human Solidarity in a
Divided World. Human Development Report 2007/2008, New York: United Nations. 399.
Overview, 18.
Parks and Roberts (2006) Globalization,
Vulnerability to Climate Change, and Perceived
Injustice. Society and Natural Resources.
19: 337-355. 18.
[Available via link
through UC-Berkeley Main Library.]
Farber, D. (2008) The Case for Climate
Compensation: Justice for Climate Change Victims in a Complex World. Utah
Law Review 2008:2. 377-413.
[Available through course website via link to
UC-Berkeley Library]
Week 4,
September 18th
Topics
Ø Conceptually addressing entire
categories of market failures underlying GHG emissions
Ø Monitoring, reporting, and verification
Ø Mandatory emissions cap
Ø Protocol for updating emissions cap
Ø
“Truth
in pricing” – including the cost of avoiding GHG emissions in the cost
of not avoiding them
Ø Addressing monopoly power – either by
changing market structure or leveraging public control
Ø Open access to new infrastructure:
buildings, transportation, and electric power
Ø Improving price transparency and
timeliness
Ø Public engagement and education
Ø Mechanisms to align incentives among
counter-parties (e.g. landlord-tenant)
Ø Public investments that generate
positive externalities (e.g. research and development)
Ø International credibility and
participation
Required Reading:
Leggett, J. (2007) Climate
Change: Current Issues and Policy Tools. Congressional
Research Service: Washington, D.C. Updated June 3, 2007. 36.
[The Policy Toolbox
– 23-32.]
Many reading
assignments in this set will be reduced to executive summaries and key
excerpts.
The Climate
Registry. (2008) General Reporting
Protocol, Version 1.1.
Read the entire
table of contents with care and choose a few parts of the manual of personal
interest.
State of California. (2002) Vehicular
Emissions: Greenhouse Gases. (AB 1493). “Pavley bill”
Schwarzenegger, A. (2005) Executive Order
S-3-05. [California
Greenhouse Gas Emission Reduction Targets]
State of California. (2006) Global Warming Solutions Act
(AB 32).
State of California.
(2006) Electricity:
Emission of Greenhouse Gases (SB 1368).
Schwarzenegger (2007). Executive Order
S-01-07. [Low
Carbon Fuel Standard.]
California EPA. (2007) AB32 Timeline and
Advisory Committees. 3
California EPA. (2007) Climate
Action Team Proposed Early Actions to Mitigate Climate Change in California.
20
Economic and Technology Advancement Advisory
Committee (ETAAC). (2008) Final Report:
Technologies and Policies to Consider for Reducing Greenhouse Gas Emissions in
California. California Air Resources Board:
Sacramento, CA.
California Energy Commission. (2007) 2007
Integrated Energy Policy Report. CEC-100-2007-008-CMF. 250.
Reference Reading:
Parker, L. and J. Blodgett. (2008) Global Climate Change: Three Policy Perspectives.
Congressional Research Service: Washington, D.C. 38.
Helme, et al (2006) Cost Effective GHG Mitigation Measures for California.
Washington: Center
for Clean Air Policy. 15.
Week 5, September 25th
Topics
Ø
Addressing non-price
barriers to emissions reductions
Ø
No regrets options
Ø
Command-and-control
policy instruments
Ø
Policies that are
essential if/when a carbon pricing regime fails
Required Reading:
National Action Plan for Energy Efficiency.
(2007) National Action Plan for Energy Efficiency Vision for
2025: Developing a Framework for Change. U.S. Environmental
Protection Agency: Washington, D.C. 84.
Also skim this executive summary and comprehensive reference for
different policy designs:
National Action Plan for Energy Efficiency.
(2006) National
Action Plan for Energy Efficiency. U.S. Environmental Protection Agency:
Washington, D.C. 216.
Yacobucci, B. and Parker, L. (2008) Climate
Change: Federal Laws and Policies Related to Greenhouse Gas Reductions.
Congressional Research Service: Washington, D.C. Updated January 28, 2008. 20.
Center for Climate Strategies. “Climate
Policies that Work.” Accessed online August 5, 2008.
Hoffman, A. (2006) Getting
Ahead of the Curve: Corporate Strategies That Address Climate Change.
Pew Center on Global Climate Change. 83.
Kammen and Nemet. (2005) Reversing
the Incredible Shrinking Energy R&D Budget. Issues in
Science & Technology. Fall: 84-88.
Choose two of the following:
Non-CO2 Greenhouse Gases
Choate, et al (2005) Emission
Reduction Opportunities for Non-CO2 Greenhouse Gases in California.
California Energy Commission: Sacramento, CA. 83.
Agriculture & Forestry
Richards, et al. (2006) Agricultural & Forestlands: U.S. Carbon Policy
Strategies. Pew Center on Global Climate Change: Washington,
D.C. 83.
Buildings
Brown, et al (2005) Towards a
Climate-Friendly Built Environment. Pew Center on Global
Climate Change: Washington, D.C. 76.
Transportation
Greene and Schafer (2003) Reducing Greenhouse
Gas Emissions From U.S. Transportation. Pew Center on Global
Climate Change: Washington, D.C. 68.
Laitner, J. (2008) Testimony to
the Senate Committee on Energy and Natural Resources, July 23, 2008.
American Council for an Energy Efficient Economy:
[pages 11-17]
Week 6,
October 2nd
Topics
Ø Rules make markets
Ø Carbon fees or taxes vs. Cap-and-trade
Ø Coverage
Ø Points of regulation
Ø Compliance obligation
Ø Enforcement authority
Ø International competitiveness provisions
Ø Petitions for special consideration
Ø All of the previous six issues arise
in both carbon tax / fee designs and cap-and-trade.
Ø Linking taxes and cap-and-trade: Free allocation vs. auction of tradeable
pollution allowances
Ø Predicting prices: modeling results and
their hazards
Required Reading:
Nordhaus, W. (2007) To Tax or Not
to Tax: Alternative Approaches to Slowing Global Warming. Review of
Environmental Economics and Policy. 1: 26-44.
Congressional Budget
Office. (2008) Policy Options
for Reducing CO2. Congressional Budget Office: Washington, D.C. 42.
Farrell and Lave (2004) Emission Trading
and Human Health. Annual Review of Public Health
25: 119-138.
[Available via link through
UC-Berkeley Main Library.]
Lohmann (2006) “Lessons
Unlearned,” in Carbon Trading: A Critical Conversation on Climate
Change, Privatisation and Power. Journal/Development Dialogue 48. pp.
71-101.
Congressional Budget Office. (2007) Trade-offs
in Allocating Allowances for CO2 Emissions. Congressional Budget
Office: Washingto, D.C. 8.
Ellerman, A.D. and P. Jaskow. (2008) The
European Union’s Emission Trading System in Perspective. Pew Center
on Global Climate Change, Washington, D.C. 64.
Reference Reading:
WRI.
(2006) Climate
Policy Terminology. The Bottom Line on… Issue No. 1. World Resources
Institute: Washington, D.C. 2.
On Market Design Considerations
LaCaount (2006) Design
Issues for Market-based Greenhouse Gas Reduction Strategies.
Cambridge Energy Research Associates: Cambridge, MA. 1-20.
National Commission on Energy Policy. (2007)
Allocating
Allowances in a Greenhouse Gas Trading System. National
Commission on Energy Policy: Washington, D.C. 44.
On the EU Emissions Trading Scheme
Sijm, Neuhoff and Chen. (2006) CO2 cost
pass-through and windfall profits in the power sector. Climate
Policy 6: 49-72.
[or freely available as a working paper]
Neuhoff, Martinez and Sato. (2006) Allocation,
incentives and distortions: The impact of EU ETS emissions allowance
allocations to the electricity sector. Climate Policy 6: 73-91.
[or freely available as a working paper]
On Environmental Justice Concerns
EJ Matters. (2008) “Theory vs Reality: Debunking the Myths of
Cap-and-Trade,” www.ejmatters.org.
EPA. (2005) The Acid Rain Program and Environmental Justice:
Staff Analysis. Clean Air Markets Division, Office of Air and
Radiation, U.S. Environmental Protection Agency: Washington, D.C. 23.
Week 7,
October 9th
Topics
Ø
Cap for covered
entities
Ø
Distribution of
pollution permits
Ø
Types of offsets:
Domestic and international
Ø
Terms for offsets: Negotiating
criteria for credit and liability
Ø
Structure and
influence of scientific review process
Ø
Ten dimensions of
cost containment
Ø
Price control
mechanisms and market oversight
o
safety valve
o
reserve-based
o
updating price
buffers
Ø
Linking with other
countries, and integrating with states
Ø International competitive provisions, revisited
Required Reading:
Competitiveness
House Committee on Energy & Commerce.
(2008) “Competitiveness
Concerns / Engaging Developing Countries,” Climate Change Legislation
Design White Paper. Subcommittee on Energy & Air Quality, House Energy
& Commerce Committee, U.S. Congress: Washington, D.C. 16.
Houser, T. (2008) “Trade Measures
vs. Output-Based Rebating in US Climate Policy,” addendum to Leveling the
Playing Field. Peterson Institute for International Economics: Washington, D.C.
3.
[Presently only available via internal
course website]
House Committee on Energy & Commerce. (2008)
“Getting
the Most Greenhouse Gas Reductions for Our Money,” Climate Change Legislation
Design White Paper. Subcommittee on Energy & Air Quality, House Energy
& Commerce Committee, U.S. Congress: Washington, D.C. 43
Offsets
Ramseur, J. (2008) The Role
of Offsets in a Greenhouse Gas Emissions Cap-and-Trade Program: Potential
Benefits and Concerns. Congressional Research Service: Washington, D.C.
39.
Lohmann. (2006) “Offsets:
The Fossil Economy’s New Arena of Conflict,” in Carbon Trading: A
Critical Conversation on Climate Change, Privatisation and Power. Journal/Development
Dialogue 48. pp. 219-221 plus one case study (your choice).
UN Environment
Program. (2008) “CDM pipeline.” Updated
August 1, 2008. Accessed via homepage or under Publications: http://cd4cdm.org/.
Wara, M. and D. Victor. (2008) A Realistic
Policy on International Carbon Offsets. Working Paper #74, Program on
Energy and Sustainable Development, Stanford University: Stanford, CA. 24.
Cost Containment
Pizer, W. Climate Policy Design
Under Uncertainty. Discussion Paper, RFF-05-44. Resources for the
Future: Washington, D.C. 22.
Nemet, G. (2008) Cost
Containment for Climate Policy Requires Linked Technology Policies.
Working Paper No. 2008-010. La Follette School of Public Affairs, University of
Wisconsin-Madison. 35.
To
be added:
Working
paper on updating price buffers, containing costs relative to market trends
rather than
historical
political negotiation.
Working
paper on the role of a scientific review and design of a legal process for
updating an
emissions
cap.
Reference Reading:
Fisher et al. (2006) The Most
Expensive Thing We Can Do Is Nothing: An Open Letter on Global Warming from
California Economists. Union of Concerned Scientists. 1.
Competitiveness
Houser, T. (2008) Leveling the
Carbon Playing Field. Peterson Institute for International
Economics: Washington, D.C. 112.
[free download by chapter]
Hummel, H. (2008) Output Based Rebates.
Draft working paper.
[Available only via internal course
website.]
Van Asselt and Biermann (2007) European
emissions trading and the international competitiveness of energy-intensive
industries: a legal and political evaluation of possible supporting measures.
Energy Policy 35: 497-506.
[Available via link through internal course
website to UC-Berkeley Library]
Grubb, M. and K. Neuhoff. (2006) Allocation and
competitiveness in the EU Emissions Trading Scheme: policy overview. Climate
Policy 6:
7-30.
RGGI Emissions Leakage Multi-State Staff
Working Group. (2008) Potential
Emissions Leakage and the Regional Greenhouse Gas Initiative. Regional
Greenhouse Gas Initiative: New York, NY. 54.
Offsets
United Nations Environment Program. (2006) The Clean Development Mechanism: An Assessment
of Progress. 165.
Chadwick (2006) Transaction costs and the
Clean Development Mechanism. Natural Resources Forum 30: 256-271.
[Available via link through internal course
website to UC-Berkeley Library]
EJ Matters. (2008) “Carbon
Offsets: A Lose-Lose Scenario to Address Climate Change.” 4.
McCarl and Sands (2007) Competitiveness
of terrestrial greenhouse gas offsets: are they a bridge to the future? Climatic
Change 80: 109-126.
[Available via link through internal course website
to UC-Berkeley Library]
Cost Containment
Orzag, P. (2008) Containing
the Cost of a Cap-and-Trade Program for Carbon Dioxide Emissions.
Testimony before the Senate Committee on Energy and Natural Resources, May 20,
2008.
Jacoby, H. and A.D. Ellerman. (2002) The Safety Valve
and Climate Policy. MIT Joint Program on the Science and Policy of
Global Change: Boston, MA.
Week 8,
October 16th
Topics
Ø Agency with market oversight authority
Ø Auction design: authority, frequency,
eligibility for participation, limits on auction positions
Ø Trading: eligibility for participation, transparency
of trading and derivative activity
Ø
Permit
characteristics: vintage and expiration, validity in multiple markets (e.g.
state / fed / EU ETS)
Ø Early auction
Ø Credit for early action
Ø Managing market supply: scientific
review and price control events
Ø Banking
Ø Borrowing
Ø Compliance period
Ø Agency with enforcement authority
Required Reading:
RGGI
RGGI.
(2007) Overview
of RGGI CO2 Budget Trading Program. Regional Greenhouse Gas Initiative,
Inc: New York, NY. 12.
RGGI.
(2008) Design
Elements for Regional Allowance Auctions under the Regional Greenhouse Gas
Initiative, March 17, 2008. Regional Greenhouse Gas Initiative, Inc.:
New York, NY. 3.
Skim this for its
structure, not its draft substance; no comparable summary available for the
actual rule
RGGI.
(2006) Summary
of the Draft Model Rule for RGGI, March 23, 2006. Regional Greenhouse
Gas Initiative, Inc: New York, NY. 5.
Skim this landmark document
defining the first carbon cap-and-trade platform in the U.S.:
RGGI.
(2007) Regional
Greenhouse Gas Initiative Model Rule, January 5, 2007. Regional
Greenhouse Gas Initiative, Inc: New York, NY. 161.
Federal Cap-and-Trade
Proposals
Parker,
L., B. Yacobucci, and J. Ramseur. (2008) Greenhouse Gas
Reduction: Cap-and-Trade Bills in the 110th Congress.
Congressional Research Service: Washington, D.C. 29.
[Course
website will have a more recently updated version: June 11, 2008.]
Letter
from Rep. Henry Waxman, Rep. Edward Markey, and Rep. Jay Inslee to Rep. Nancy
Pelosi, Speaker of the U.S. House of Representatives. “Climate Policy
Principles.” April 22, 2008.
EU ETS
DEFRA. (2006) An Operator’s Guide to the EU Emissions Trading
Scheme. Department for Environment, Food, and Rural Affairs: London,
UK. 33.
- or later update of this for
phase II if available
Ellerman, A.D. and B. Buchner (2006) Over-Allocation
or Abatement? A Preliminary Analysis of the EU ETS Based on the 2005 Emissions
Data. Fondazione Eni Enrico Mattei. 49.
Kopp, R. (2007) An
Overview of the European Union Emissions Trading Scheme,” Congressional
Testimony, March 26, 2007. Resources for the Future: Washington, D.C. 5.
Orzag, P. (2008) Implications
of a Cap-and-Trade Program for Carbon Dioxide Emissions. Testimony
before the Committee on Finance, April 24, 2008. Congressional Budget Office:
Washington, D.C. 15.
McAllister, L. (2008) Moving toward
stringency in emissions trading: the problem of slack caps. Draft paper,
University of California-San Diego Law School.
[Available via internal course website
only.]
Week 9, October 23th
The midterm allows students to demonstrate integration
of key design concepts and some fluency in the issues before moving ahead.
The exam will present some design puzzles for creative
and critical thinking. It will be “open
book,” perhaps even “open laptop” (i.e. it is not a memorization, regurgitation
exercise).
The exam will only be given part of the class time,
and the balance (to be determined) will be dedicated to open discussion of
policy design project topics of student interest.
Week 10, October
30th
Topics
Ø
Ensuring
the long-term durability of a price-based climate policy: insuring
against political failure
Ø Moderating regressive cost burdens on low
and middle-income families
Ø International competitiveness
provisions, revisited II
Ø Congressional Budget Office claim on
proceeds for “deficit reduction”
Ø Adaptation to climate impacts – domestic
Ø International obligations
o
International
deforestation
o
Adaptation
o
Technology
Transfer
Ø Energy technology research, development,
demonstration, and deployment
Ø Public spending programs on mitigation:
federal agencies, states, and utilities (LDCs)
Ø Ratepayer transitional assistance
through reimbursement of system benefit charges
Ø Political payments and windfall profits
Required Reading:
Greenstein,
R., S. Parrott, and A. Sherman. (2008) Designing Climate Change
Legislation that Shields Low-Income Households from Increased Poverty and
Hardship. Revised May 9, 2008. Center for Budget and Public Policy:
Washington, D.C. 18.
Coward, R. (2008) Carbon
Caps and Efficiency Resources: How Climate Legislation Can Mobilize Efficiency
and Lower the Cost of GHG Reduction. Testimony in a hearing on
Efficiency and Climate Policy before the Select Committee on Energy
Independence and Global Warming, U.S. House of Representatives: Washington,
D.C. 16.
Assigned excerpts:
Barnes,
P. (2008) Climate
Solutions: A Citizen’s Guide. Chelsea Green: White River Junction, VT.
112.
Markey,
E. (2008) Title
by Title Summary: Investing in Climate Action and Protection Act.
HR6186, 110th Congress. 10.
Lieberman-Warner Climate
Security Act of 2007
Lieberman,
J. (2007) The
Lieberman-Warner Climate Security Act of 2007 (S.2191), as reported
from the Senate Environment and Public Works Committee, December 5, 2007:
Summary of the Core Bill. 13.
Assigned excerpts:
Energy
Information Administration. (2008) Energy
Market and Economic Impacts of S.2191, the Lieberman-Warner Climate Security
Act of 2007. Washington, DC. SR/OIAF/2008-01. 74.
All
Data Available: http://www.eia.doe.gov/oiaf/servicerpt/s2191/index.html
Assigned excerpts:
EPA.
(2008) EPA Analysis of the Lieberman-Warner Climate Security Act of 2008.
U.S. Environmental Protection Agency: Washington, D.C. 193.
http://www.epa.gov/climatechange/downloads/s2191_EPA_Analysis.pdf
Stabenow, D. et al. (2008) Climate Policy
Principles. Letter to Sen. Harry Reid, Majority Leader of the U.S. Senate,
and Sen. Barbara Boxer, Chair of the Senate Environment and Public Works
Committee, regarding climate change policy. June 6, 2008.
Reference Reading:
CBPP.
(2008) How a “Climate
Rebate” Would Work. Center for Budget and Public Policy: Washington,
D.C. 3.
Osrzag, P. (2008) Options
for Offsetting the Economic Impact on Low- and Moderate-Income Households of a
Cap-and-Trade Program for Carbon Dioxide Emissions. Letter to the Honorable Jeff Bingaman, June 17, 2008. Congressional
Budget Office: Washington, D.C. 13.
Week 11,
November 6th
Topics
Ø The role of states in the formulation of
U.S. federal climate policy
Ø Complementary policies, or policies that
address non-price barriers to mitigation
Ø Addressing split incentives and
principal-agent problems
Ø Control of utilities (Load Distribution
Companies; and half the nation’s generation) through Public Utility Commissions
Ø Government procurement policies
Ø Land-use planning
Ø Building codes, and the “30% solution”
Ø Addressing local and regional environmental
justice concerns
Ø Education systems from pre-school to PhD
Ø Turning barriers into business
opportunities
Required Reading:
Ramseur,
J. (2007) Climate Change: Action by States to Address
Greenhouse Gas Emissions. Congressional Research Service: Washington,
D.C. 28.
[Course website will have version updated
November 2007]
Aulisi, A. et al. (2007) Climate
Policy in the State Laboratory. World Resources Institute: Washington,
D.C. 74.
Center for Climate Strategies. (2008) CCS Catalog of
Climate Actions. Center for Climate Strategies:
Midwestern Governors Association. (2007) Energy Security and Climate
Stewardship Platform for the Midwest. Midwestern Governors Association:
Lombard, IL. 36.
California Air Resources Board. (2008) Draft
Climate Change Scoping Plan: A Framework for Change. California Air
Resources Board: Sacramento, CA. 93.
Final version to be released Fall 2008.
Western Climate Initiative, http://www.westernclimateinitiative.org/
Framework plan should be released in
September
Reference Reading:
U.S. Conference of Mayors. (2005) Climate
Protection Agreement. U.S. Conference of Mayors:
[~830 mayors have now signed.]
Conference of Governors on Climate Change. (2008)
Governor’s
Declaration on Climate Change. April 18, 2008. Yale University: New
Haven, CT. 2.
Midwestern
States Greenhouse Gas Accord, 4.
Energy Efficient Codes Coalition. “Thirty-Percent Solution.”
Accessed August 5, 2008.
Bailie, et al. (2004) Turning
the Corner on Global Warming Emissions: An Analysis of Ten Strategies for
California, Oregon, and Washington. The Energy Foundation: San
Francisco, CA. 44.
Week 12,
November 13th
After compiling materials for all three
class periods, I would like to confer with other ERG faculty and students in
the course before making a final judgment.
With limited time, we will not be able to
cover all three with an entire class period.
The session on economic analysis of climate policies involves the most
rigorous academic material and offers the highest potential for developing
sharper analytical skills. The other two
are more topical. It may be possible to
wedge adaptation policy and the major emitters into other class periods.
Week 13,
November 20th
Topics
Ø
Clean
Air Act and compliance with the Supreme Court ruling in Mass v. EPA
Ø
Battles
over jurisdiction: Congressional committees, federal agencies, states vs. feds,
etc.
Ø Federal pre-emption of state policies /
Federal denial of state pre-emption of federal policies
Ø Complications with World Trade
Organization rules and ongoing disputes
Ø
Regulatory
authority in the electric power sector, particularly grid infrastructure
Ø Demands for liability waivers for carbon
sequestration
Ø Diffusing the federal Renewable Fuel
Standard with substitution of fuel electricity
Ø Nationally crucial role of renewable heating provisions
in state Renewable Portfolio Standards
Required Reading:
EPA. (2008) Advanced
Notice of Proposed Rule-Making. U.S. Environmental Protection Agency:
Washington, D.C. 493.
[Sections VI, VII, and VIII]
Meltz, R. (2008) Climate Change
Litigation: A Growing Phenomenon. Congressional Research Service:
Washington, D.C. 38.
[Course website will have a more recent
version, updated April 7, 2008]
Morgan, Apt and Lave. (2005) The U.S.
Electric Power Sector and Climate Change Mitigation. Pew Center on
Global Climate Change: Washington, D.C. 84.
Presidential Climate Action Project. (2008) Presidential
Climate Action Plan. University of Colorado: Denver, CO. 184.
[updated edition due to be released in
September or October 2008]
Green (2005) Climate change, regulatory policy
and the WTO - How constraining are trade rules? Journal of International
Economic Law 8: 143-189.
[Available via link through internal courswe
website to UC-Berkeley Library]
Brewer (2003) The trade regime and
the climate regime: institutional evolution and adaptation.
Climate Policy 3: 329-341.
[Available via link through internal courswe
website to UC-Berkeley Library]
Lohmann. (2006) “Ways
forward” and “Climate
Justice Now! The Durbin Declaration on Carbon Trading,” in Carbon
Trading: A Critical Conversation on Climate Change, Privatisation and Power. Development
Dialogue 48. pp. 329-358.
Reference Reading:
Farrell, A., W.M. Hanneman, and C. Busch.
(2006) “Synthesis,”
Managing GHG Emissions In California. Hanemann and Farrell, eds.
January. 26.
Ellerman, A.D. (2007) The EU
Emission Trading Scheme: Prototype of a Global System? Harvard Project
on International Climate Agreements. Discussion Paper 08-02. 38.
Week 14,
December 4th
Required Reading:
Inslee, J. and Hendricks, B. (2007) Apollo’s
Fire: Igniting America’s Clean Energy Economy. Island Press: Boston, MA.
www.apollosfire.net
[scanned excerpt available on course website]
Review from Week 8:
Letter
from Rep. Henry Waxman, Rep. Edward Markey, and Rep. Jay Inslee to Rep. Nancy
Pelosi, Speaker of the U.S. House of Representatives. “Climate Policy
Principles.” April 22, 2008.
http://oversight.house.gov/documents/20080422101143.pdf
Short interview with Congressman
Inslee on climate policy
Look up the New Apollo Energy Act on Thomas (Library of Congress
database), and browse the outline:
Inslee, J. (2007) New Apollo Energy Act.
HR2809, 110th Congress, U.S. House of Representatives:
Look up all bills sponsored by Rep. Inslee on Thomas (Library of
Congress database), and browse – be prepared to make the most of this
opportunity!
Reference Reading:
Taylor, et al (2006) Technological
Innovation and Public Policy. Managing Greenhouse Gas
Emissions In California University of California.
3-1 to 3-31.
Alic, et al (2003) U.S. Technology and
Innovation Policies: Lessons for Climate Change. Pew
Center on Global Climate Change. 47.
Gallagher, Holdren and Sagar (2006) Energy-technology
innovation. Annual Review of
Environment and Resources 31: 193-237.
Kammen (2006) The Rise of Renewable
Energy. Scientific American. September. 84-93.
[Available via course website through link to
UC-Berkeley Library]
Week 15,
December 11th
Taught via
link from COP 14 in
Topics
Ø
UN
Framework Convention on Climate Change
Ø
Kyoto
Protocol
Ø
Bali
Road Map
Ø
Asia
Pacific Partnership
Ø
Major
Economies Process
Ø
Current
negotiations at the 14th Convening of the Parties in
Required Reading:
Shanahan, M. (2007) A journalist’s guide to the
Bali climate conference. International Institute for Environment and
Development: London, UK. 4.
http://www.iied.org/pubs/pdfs/17021IIED.pdf
(will be replaced with update released for Poznan)
Review from Week 3:
United Nations. (1992) United Nations
Framework Convention on Climate Change. United Nations: New York, NY. 25.
http://unfccc.int/resource/docs/convkp/conveng.pdf
United Nations. (1998) Kyoto Protocol to
the United Nations Framework Convention On Climate
Change. United
Nations: New York, NY. 21.
http://unfccc.int/resource/docs/convkp/kpeng.pdf
UNFCCC. (2007) Bali Action Plan. UNFCCC
Convening of the Parties 13. Bali, Indonesia. 5.
http://unfccc.int/files/meetings/cop_13/application/pdf/cp_bali_action.pdf
Browse this site to see development of sector-level approaches:
Asia-Pacific Partnership on Clean Development
and Climate Change
http://www.asiapacificpartnership.org/
Browse this site to see development of negotiations among major
emitters:
U.S. State
Department. (2008) Major Economies Process on Energy Security and Climate
Change.
http://www.state.gov/g/oes/climate/mem/
Fletcher, S. and L. Parker. (2008) Climate
Change: Kyoto Protocol, the Bali “Action Plan”, and International Actions. Congressional
Research Service: Washington, D.C. 24.
http://fpc.state.gov/documents/organization/80734.pdf [January 2007]
[Course website will have version updated June
2008]
Hummel, H. (2007) Debrief on Bali Roadmap.
Personal correspondence. December 2007. 15.
[http://www.holmeshummel.net/Bali-debrief.pdf]
Aldy,
J. and R. Stavins. (2008) Economic Incentives in a New Climate Agreement.
Issue Paper prepared for the Harvard Project on International Climate
Negotiations: Boston, MA. 9.
http://belfercenter.ksg.harvard.edu/files/RS-JA%20Paper%20Economic%20Incentives%20080430.pdf
Bell, R. (2006) “The Kyoto Placebo,” Issues
In Science and Technology, Winter 2006. pp 28-31.
http://www.earth.columbia.edu/grocc/documents/KyotoPlaceboISTDecember2005.pdf
To be added:
Bali Road Map, updated working documents
emerging from UNFCCC meeting in Accra, Ghana.
Week 16
Final policy
design projects may be submitted anytime
prior to the
end of the final exam time assigned by
the university:
Saturday,
December 20th
Congratulations!!