James Stock, Harvard: Federal Coal Program Reform, the Clean Power Plan, and the Interaction of Upstream and Downstream Climate Policies
Department seminar. James Stock is the Harold Hitchings Burbank Professor of Political Economy at Harvard. He will present a paper entitled "Federal Coal Program Reform, the Clean Power Plan, and the Interaction of Upstream and Downstream Climate Policies", co-authored by Todd Gerarden and W. Spencer Reeder.
James Stock. Photo: Harvard University
Can supply-side environmental policies that limit the extraction of fossil fuels reduce CO2 emissions? We study interactions between a specific supply-side policy – an environmental charge on federal coal, or “royalty adder” – and demand-side emissions regulation under the Clean Power Plan (CPP). Using a detailed dynamic model of the power sector, we estimate that, absent the CPP, a royalty adder equal to the social cost of carbon would generate three-quarters of the projected CPP emissions reductions. With the CPP in place, the royalty adder reduces emissions by reducing leakage and causing the CPP to be non-binding in some scenarios.
Host: Bård Harstad