Thomas D. Peterson

Intergovernmental climate change mitigation policies: theory and outcomes

This paper develops a framework for analysing intergovernmental relationships around greenhouse gas (GHG) mitigation policies along a cooperation-conflict spectrum that affects the probability of their enactment. Cooperative policies, such as federal fiscal transfers to sub-national governments, facilitate enactment. Coordination policies, including enabling and funding mechanisms, promote interdependence between jurisdictions. Competitive policies, such as federal performance standards and price mechanisms, increase political conflict over authority. We categorise 23 policies developed by over 1,500 state stakeholders into the cooperation/coordination/conflict taxonomy. If scaled to the national level, these policies could reduce GHG emissions by over 3 billion tonnes by 2020 and generate nearly 2.2 million jobs (1.19 per cent above baseline projections). Nearly two-thirds of the job gains are from coordinated and cooperative policy options that are unlikely to occur under the status quo policy process. We recommend a national climate action planning process to reduce GHG emissions while increasing aggregate economic efficiency.

Climate Change Policy Formation in Michigan The Case for Integrated Regional Policies

Like 30 other states in the U.S., Michigan recently began addressing the problem of climate change through comprehensive mitigation action planning. The Michigan climate initiative involved combining a stepwise, fact-based, stakeholder decision process and technical analyses to formulate a consensus-based climate action plan. This paper reports on the results of work conducted by policy analysts and facilitators of the policy-making process in response to state government and stakeholder decisions on three key aspects. First is the choice of policy actions used to establish a comprehensive portfolio of actions and economy-wide greenhouse gas (GHG) goals and targets. Second is the design of policy instruments to use to implement these specific GHG mitigation actions. Third is the decision on whether the state should pursue its target for net GHG reduction through sector based policies and measures, a regional cap and trade program, or both combined. We summarize the results of applying a formal model for analyzing the implications of alternative environmental policies and instruments. The model was applied to data on the financial costs/savings and applicability of a spectrum of GHG reduction options developed by a consensus of stakeholders from all segments of the Michigan population. We conclude that a combination of sector-based measures and market incentive-based policies could attain a low cost, high co-benefit solution if Michigan joined with other Midwestern States in developing the cap and trade aspect of its climate action plan.

Regional Carbon Dioxide Permit Trading in the United States: Coalition Choices for Pennsylvania

An overview is given of the growing number of regional associations in which states have entered into voluntary arrangements to limit greenhouse gas (GHG) emissions. In particular, in the Regional Greenhouse Gas Initiative (RGGI), a number of northeastern states have joined to create a regional GHG cap and trade program, beginning with the utility industry. Analysis is made of the five key issues relating to these current and potential climate action associations: the extent of the total and individual state mitigation cost-savings across all sectors from potential emission permit trading coalitions; the size of permit markets associated with the various coalitions; the relative advantages of joining various coalitions for swing states such as Pennsylvania; the implications of the exercise of market power in the permit market; and the total and individual state/country cost-savings from extending the coalition beyond US borders. It is shown that overall efficiency gains from trading with a system of flexible state caps, with greater overall cost savings increasing with increasing geographic scope.

China-U.S. cooperation on China's subnational low carbon planning toolkit development and application

In May 2011, the China-based Global Environmental Institute and the US-based Center for Climate Strategies successfully joined the China-U.S. EcoPartnership program. The cooperation aims to adapt a methodology and tools used for making U.S. state climate action plans to Chinas subnational and municipal contexts, in order to help subnational governments achieve carbon emission targets by making scientific and effective climate and energy policies. To achieve this objective, a China subnational low carbon planning toolkit including a systematic process of selection, design and analysis of climate and energy policies was developed and successfully demonstrated in Chongqing Municipality. Through technical exchange and training, the capabilities of Chinese officials and experts who cooperated with us to quantitatively analyze low carbon development policies have been improved. The cooperation also promoted exchange between Chinese provinces and U.S. states on climate and energy policy.

State Approaches to Reducing Transportation Sector Greenhouse Gas Emissions

To address climate change, many U.S. states are taking action to establish policies to reduce greenhouse gas emissions in all economic sectors. With the transportation sector contributing 28 percent of national greenhouse gas emissions in the United States in 2006, strategies to mitigate transportation sector emissions are an important component of state’s climate action plans. This paper summarizes the transportation and land use approaches that states have included in their climate action plans to date. Transportation and land use sector options are generally organized into three main categories: vehicle technology, fuels, and travel activity/land use. This paper adds a fourth category: vehicle operations to acknowledge that important mitigation options include how drivers operate their vehicles. Annual greenhouse gas reduction potential in 2012 and 2020 and cost effectiveness values are provided. The information in this paper provides a starting point for transportation practitioners to use when initiating their own evaluations of greenhouse gas mitigation options at the regional, state, or local level. The state-specific information on which this paper is based can be found at the Center for Climate Strategies website at http://www.climatestrategies.us.