Economics and Environmental Markets: Lessons from Water-quality Trading

Water-quality trading is an area of active development in environmental markets. Unlike iconic national-scale air-emission trading programs, water-quality trading programs address local or regional water quality and are largely the result of innovations in water-pollution regulation by state or substate authorities rather than by national agencies. This article examines lessons from these innovations about the "real world" meaning of trading and its mechanisms, the economic merits of alternative institutional designs, utilization of economic research in program development, and research needed to improve the success of environmental markets for water quality

Early Implementation of the Health Coverage Tax Credit in Maryland, Michigan, and North Carolina: A Case Study Summary

Examines the effectiveness of HCTCs and assesses their prospects as a model for broader reforms. Proposes reforms to improve HCTCs' ability to help current target populations and aid policymakers in designing future health insurance tax credits

Growing a Green Economy for All: From Green Jobs to Green Ownership

This Democracy Collaborative report provides the first comprehensive survey of community wealth building institutions in the green economy. Featuring ten cases, the report identifies how policy and philanthropy can build on these examples to create "green jobs you can own.

Addressing Climate Change with a Comprehensive U.S. Cap-and-Trade System

There is growing impetus for a domestic U.S. climate policy that can provide meaningful reductions in emissions of CO2 and other greenhouse gases. I describe and analyze an up- stream, economy-wide CO2 cap-and-trade system which implements a gradual trajectory of emissions reductions (with inclusion over time of non-CO2 greenhouse gases), and includes mechanisms to reduce cost uncertainty. Initially, half of the allowances are allocated through auction and half through free distribution, with the share being auctioned gradually increasing to 100 percent over 25 years. The system provides for linkage with emission reduction credit projects in other countries, harmonization over time with effective cap-and-trade systems in other countries and regions, and appropriate linkage with actions taken in other countries, in order to establish a level playing field among domestically produced and imported products.Cap-and-Trade System, Carbon Dioxide, Greenhouse Gas Emissions, Global Climate Change, Carbon Taxes

Composite Leading Indicators for Ukraine: An Early Warning Model

The project has undertaken the following tasks: Based on an analysis of the pattern of growth of the Ukrainian economy since the end of the post-Soviet recession (the year 2000) we have formulated the hypotheses concerning the factors preceding/affecting the upturns and downturns (with a focus on the latter) of the country’s growth; We have studied international “best practice” in early warning indicators in order to design a similar system for Ukraine; We have selected the relevant indicators, consistent with our hypotheses and used a probit model in order to experiment with these indicators; The final set of indicators used in the model included the following lagged independent variables: changes in the value of export, changes in real Exchange rate of the hryvnya, producers’ price index adjusted for domestic price inflation index and the IMF’s metal price index, bank credit interest rate, changes in the industrial output of the European Union; our dependent variable (which was used as a proxy for the overall economic growth) was changes in real industrial output; The model was used to formulate a warning forecast for the Ukrainian economy for the second half of 2008 based on the data for the January 2000 – June 2008 period; all predictions for the second half of 2008 have delivered warning about a downturn of the Ukrainian economy; We ran a few additional experiments with the model, and We have recommended several further steps of analysis toward a full implementation and institutionalization of such a model in the near future.business cycle, forecasting, econometric model, Ukraine, Ukrainian economy, economic growth, GDP, early warning indicator

The Design of a Carbon Tax

We consider the design of a tax on greenhouse gas emissions for a developed country such as the United States. We consider three sets of issues: the optimal tax base, issues relating to the rate (including the use of the revenues and rate changes over time) and trade. We show that a well-designed carbon tax can capture about 80% of U.S. emissions by taxing fewer than 3,000 taxpayers and up to almost 90% with a modest additional cost. We recommend full or partial delegation of rate setting authority to an agency to ensure that rates reflect new information about the costs of carbon emissions and of abatement. Adjustments should be made to the income tax to ensure that a carbon tax is revenue neutral and distributionally neutral. Finally, we propose an origin-based system for trade with countries that have an adequate carbon tax and a system of border taxes for imports from countries without a carbon tax. We suggest a system that imposes presumptive border tax adjustments with the ability of an individual firm to prove that a different rate should apply. The presumptive tax could be based either on average emissions for production of the item by the exporting country or by the importing country.

Evaluating Management Options to Increase Roadside Carbon Sequestration

We estimated the amount of carbon sequestered along Montana Department of Transportation (MDT) roads and tested 3 different highway right-of-way (ROW) management techniques to increase carbon stocks. Using Geographic Information System techniques, the total ROW acreage owned by MDT was found to sequester 75,292 metric tons of carbon per year and to consist mostly of grasslands (70%). From 2016-2018 we tested 3 ROW management techniques to increase carbon stocks- increase mowing height, plant woody shrubs, or add legumes to reclamation seed mixes of disturbed soils - at 3 sites (Three Forks [3F], Bear Canyon [BC], and Bozeman Pass [BP]) along Interstate 90 in southwestern Montana. Soil samples generally averaged 0.75–1.5% soil organic carbon (SOC) at the 3F site, 2.5–4% SOC at the BC site, and 1.5–2.5% SOC at the BP site. Average SOC levels were always lower in 2018 than in 2016. Soil respiration rates were generally highest in June or July at the BC site, averaging ~4 μmol CO2 m-2 second-1. Soil respiration rates were lower at the BC site in November 2016, at the BP site in June 2018, and at the 3F site in July 2018 (all ~2–3 μmol CO2 m-2 s-1). Aboveground biomass carbon estimates generally mirrored belowground SOC estimates. Taken together, our findings suggest that of the three treatments implemented (raised mowing height, shrub planting, and disturbance), minimizing disturbance to soils likely makes the greatest contribution to the medium- and long-term carbon-storage potential of these roadside soils