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Full-Text Articles in Social and Behavioral Sciences
The Allocation Of Permits In U.S. Climate Change Legislation, Don Fullerton, Daniel Karney
The Allocation Of Permits In U.S. Climate Change Legislation, Don Fullerton, Daniel Karney
Don Fullerton
Don Fullerton and Daniel Karney of the University of Illinois take a hard look at the allocation of CO2 emissions permits under the Waxman-Markey bill and give it minimally passing marks.
Distributional Effects Of Environmental And Energy Policy: An Introduction, Don Fullerton
Distributional Effects Of Environmental And Energy Policy: An Introduction, Don Fullerton
Don Fullerton
This chapter reviews literature on the distributional effects of environmental and energy policy. In particular, many effects of such policy are likely regressive. First, it raises the price of fossil-fuel-intensive products, expenditures on which are a high fraction of low-income budgets. Second, if abatement technologies are capital-intensive, then any mandate to abate pollution may induce firms to use more capital. If demand for capital is raised relative to labor, then a lower relative wage may also hurt low-income households. Third, pollution permits handed out to firms bestow scarcity rents on well-off individuals who own those firms. Fourth, low-income individuals may …