State Mitigation Efforts (Domestic Track Breakout)

Thursday Jun 06   01:30 PM to 05:00 PM (3 hours 30 minutes)
Mary Graydon Center Room 5

2019 State-Level Carbon Pricing Workshop

Instructor: Dr. Barry Rabe

This document hosts the learning objectives and assigned readings for 2019’s domestic carbon pricing session. This section will consist of three distinct modules, each drawing from experience with different dimensions of climate policy at the American state or Canadian provincial level over the past decade or survey data on American public opinion.

First Hour: Carbon Tax Lessons and Findings from U.S. Public Opinion Surveys

  • The key design elements that made it possible for British Columbia to adopt a carbon tax more than a decade ago and expand it over time, building support across partisan lines.

  • Major findings from the past decade of public opinion analysis of American views on carbon taxes, including alternative scenarios for using revenue.

Reading:Issues in Environment Energy Policy, American Opinions on Carbon Taxes and Cap-and-Trade: 10 Years of Carbon Pricing in the NSEE, June 2018.

Second Hour: Lessons from Taxing Oil and Gas Production and the Politics of Taxing Methane Flaring

  • The key design features of state severance (or energy extraction) taxes and how they were established in major production states despite intensive industry opposition.

  • The key lessons from Alaska’s experience in maintaining a very high severance tax and royalty rate system over many decades, while returning much of the revenue to its citizens through an annual dividend check.

  • Emerging lessons from states considering a tax on flared methane, borrowing from Norway’s long-standing experience with this.

Reading:The Politics of State Severance Taxes in the Shale Era, Barry G. Rabe, and Rachel Hampton, April 2015

Third Hour: The Politics and Management of Carbon Cap-and-Trade

  • The political and management challenges that cap-and-trade has faced when attempted to date.

  • The key factors that have enabled the multi-state Regional Greenhouse Gas Initiative (RGGI) to become the most resilient state carbon pricing program over the past decade.

  • The prospects for expanding on the RGGI experience in electricity to other sectors, including the proposed Transportation Climate Initiative

Reading:Chapter 5 of “Can We Price Carbon?”, Dr. Barry Rabe, MIT Press, 2018

University of Michigan
Director of the Center for Local, State, and Urban Policy (CLOSUP) at the Ford School

My Schedule

Add to Your Schedule