Institute for Policy Integrity

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Publications

Viewing all publications in Academic Articles/Working Papers
  • The One‐In, Two‐Out Executive Order Is a Zero
    Academic Article/Working Paper

    The One‐In, Two‐Out Executive Order Is a Zero

    By Caroline Cecot and Michael A. Livermore
    June 19, 2017

    President Trump’s Executive Order 13,771 directs each agency to repeal at least two existing regulations before issuing a new one and imposes a regulatory budget that sets a cap on total incremental regulatory costs. In this essay, Caroline Cecot and Michael Livermore evaluate the Order against three priorities that have been adopted by prior administrations or promoted by scholars, commentators, or interest groups: (1) increasing net benefits of regulation, (2) decreasing regulatory burdens, and (3) increasing presidential control over agencies. They also compare the Order against the regulatory reform efforts in other countries.

    The authors conclude that the Order is unlikely to achieve any of these goals without significant changes. They urge President Trump to scrap the Order and instead ensure that agencies engage in reasonable retrospective review of existing regulations and that the Office of Information and Regulatory Affairs has sufficient staff to oversee agency decisionmaking, among other sensible reforms.

  • Few and Not So Far Between
    Academic Article/Working Paper

    Few and Not So Far Between

    A Meta-analysis of Climate Damage Estimates

    By Peter H. Howard and Thomas Sterner
    June 12, 2017

    Given the vast uncertainty surrounding climate impacts, meta-analyses of global climate damage estimates are a key tool for determining the relationship between temperature and climate damages. Due to limited data availability, previous meta-analyses of global climate damages potentially suffered from multiple sources of coefficient and standard error bias. To address and test for these biases, we expand on previous datasets to obtain sufficient degrees of freedom to make the necessary model adjustments, including dropping duplicate estimates and including methodological variables. Estimating the relationship between temperature and climate damages using weighted least squares with cluster-robust standard errors, we find strong evidence that duplicate and omitted variable biases flatten the relationship. However, the magnitude of the bias greatly depends on the treatment of speculative high-temperature (>4 ◦C) damage estimates. Replacing the DICE-2013R damage function with our preferred estimate of the temperature–damage relationship, we find a three- to four-fold increase in the 2015 SCC relative to DICE, depending on the treatment of productivity. When catastrophic impacts are also factored in, the SCC increases by four- to five-fold.

  • Managing the Future of the Electricity Grid: Energy Storage and Greenhouse Gas Emissions
    Academic Article/Working Paper

    Managing the Future of the Electricity Grid: Energy Storage and Greenhouse Gas Emissions

    By Richard L. Revesz and Burcin Unel
    June 6, 2017

    Recent advances in technology and the consequent decline in manufacturing costs are making energy storage systems a central element of energy and climate change policy debates across the nation. Energy storage systems have the potential to provide many benefits such as lower electricity prices at peak demand times, deferred or avoided new capacity investments, and reduced greenhouse gas emissions. Indeed, both federal and state policymakers are enthusiastically encouraging more energy storage deployment with the belief that energy storage systems will help reduce greenhouse gas emissions from the electricity sector by making intermittent and variable renewable energy resources such as solar and wind more attractive.

  • The Social Cost of Carbon: A Global Imperative
    Academic Article/Working Paper

    The Social Cost of Carbon: A Global Imperative

    By Richard L. Revesz, Jason A. Schwartz, Peter H. Howard, Kenneth Arrow, Michael A. Livermore, Michael Oppenheimer, and Thomas Sterner
    March 11, 2017

    To solve the unprecedented global commons problem posed by climate change, all nations must internalize the global externalities of their emissions. If not, collective efforts will never achieve an efficient, stable climate outcome. The United States’ practice of looking at the global impact of emissions has come under attack in courtrooms and academic journals, with some arguing that the U.S. should instead consider only the domestic impacts of climate change in its decisionmaking.

    In a letter published in Review of Environmental Economics and Policy, we argue that federal agencies should continue to use a global number for Social Cost of Carbon, as developed by the Interagency Working Group on Social Cost of Carbon. First, the United States benefits tremendously if other countries set policy based on global rather than local effects. From a legal perspective, not only does international law—the U.N. Framework Convention on Climate Change—commit the United States to account for global effects, but domestic laws like the Clean Air Act and the National Environmental Policy Act also either require or give discretion to agencies to consider global climate costs. Many seemingly “foreign” climate damages would actually spill over to harm the United States.

  • Think Global
    Academic Article/Working Paper

    Think Global

    International Reciprocity as Justification for a Global Social Cost of Carbon

    By Peter H. Howard and Jason A. Schwartz
    August 16, 2016

    U.S. climate regulations present a special case of federal agencies applying a global, rather than exclusively domestic, perspective to the costs and benefits in their regulatory impact analyses. Since 2010, federal agencies have emphasized global valuations of climate damages for policies that affect carbon dioxide emissions, using a metric called the “Social Cost of Carbon.” More recently, agencies have also begun to use a global valuation of the “Social Cost of Methane,” for methane emissions. Yet lately, these global metrics have come under attack in courtrooms and academic journals, where opponents have challenged the statutory authority and economic justification for global values. This paper defends a continued focus on the global effects of U.S. climate policy, drawing on legal, strategic, and economic arguments.