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Jeffrey Holmstead visits Kennedy School, hosted by HEEP

April 23, 2019

Jeffrey Holmstead, former Assistant Administrator of the U.S. Environmental Protection Agency for Air and Radiation (OAR), visited Harvard Kennedy School on April 8, 2019 – hosted by the Harvard Environmental Economics Program and its Director, Robert Stavins. Mr. Holmstead headed OAR during the George W. Bush Administration, from 2001 to 2005. During his tenure, he was the architect of several of the agency’s most important initiatives, including the Clean Air Interstate Rule, the Clean Air Diesel Rule, the Mercury Rule for power plants and the reform...

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Featured Faculty Fellow: Dale W. Jorgenson

April 10, 2019

Dale W. Jorgenson is the Samuel W. Morris University Professor at Harvard University. He was awarded the prestigious John Bates Clark Medal by the American Economic Association in 1971 and served as President of the Association in 2000. Jorgenson has conducted groundbreaking research on energy and the environment, tax policy and investment behavior, and a number of other topics in...

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Former HEEP Visiting Scholar and Pre-Doctoral Fellow Leads Study on New England Land Conservation and its Impact on Local Economies

April 2, 2019

Kate Sims, former Visiting Scholar and Pre-Doctoral Fellow with the Harvard Environmental Economics Program, is co-lead of a new study describing how land conservation in New England impacts local economies by increasing employment rates. Kate is currently Chair of the Economics Department at Amherst College....

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Learn about HEEP

HEEP is a university-wide initiative addressing today's complex environmental challenges and is based in the Harvard Kennedy School’s Mossavar-Rahmani Center for Business and Government. Learn more by reading director Robert Stavins' welcome message.

Recent Publications

Richard, Schmalensee, and Robert Stavins. “Policy Evolution Under the Clean Air Act.” Harvard Environmental Economics Program, 2018.Abstract
The U.S. Clean Air Act, passed in 1970 with strong bipartisan support, was the first environmental law to give the Federal government a serious regulatory role, established the architecture of the U.S. air pollution control system, and became a model for subsequent environmental laws in the United States and globally. We outline the Act’s key provisions, as well as the main changes Congress has made to it over time. We assess the evolution of air pollution control policy under the Clean Air Act, with particular attention to the types of policy instruments used. We provide a generic assessment of the major types of policy instruments, and we trace and assess the historical evolution of EPA’s policy instrument use, with particular focus on the increased use of market-based policy instruments, beginning in the 1970s and culminating in the 1990s. Over the past fifty years, air pollution regulation has gradually become much more complex, and over the past twenty years, policy debates have become increasingly partisan and polarized, to the point that it has become impossible to amend the Act or pass other legislation to address the new threat of climate change.
Schatzki, Todd, and R. N. Stavins. “Key Issues Facing California's GHG Cap-and-Trade System for 2021-2030.” Cambridge, MA: Harvard Environmental Economics Program, 2018.Abstract
California’s Greenhouse Gas (GHG) cap-and-trade program is a key element of the suite of policies the State has adopted to achieve its climate policy goals. The passage of AB 398 (California Global Warming Solutions Act of 2006: market-based compliance mechanisms) extended the use of the cap-and-trade program for the 2021-2030 period, while also specifying modifications of the program’s “cost containment” structure and directing CARB to “[e]valuate and address concerns related to overallocation in [ARB’s] determination of the allowances available for years 2021 to 2030.” The changes being considered by CARB will not only affect the program’s stringency, but also its performance by affecting the ability of the “cost containment” structure to mitigate allowance price volatility and the risk of suddenly escalating allowance prices.
Gerarden, Todd D.Demanding Innovation: The Impact of Consumer Subsidies on Solar Panel Production Costs.” Cambridge, MA: Harvard Environmental Economics Program, 2018.Abstract
This paper analyzes the impacts of consumer subsidies in the global market for solar panels. Consumer subsidies can have at least two effects. First, subsidies shift out demand and increase equilibrium quantities, holding production costs fixed. Second, subsidies may encourage firms to innovate to reduce their costs over time. I quantify these impacts by estimating a dynamic structural model of competition among solar panel manufacturers. The model produces two key insights. First, ignoring long-run supply responses can generate biased estimates of the effects of government policy. Without accounting for induced innovation, subsidies increased global solar adoption 49 percent over the period 2010-2015, leading to over \$15 billion in external social benefits. Accounting for induced innovation increases the external benefits by at least 22 percent. Second, decentralized government intervention in a global market is inefficient. A subsidy in one country increases long-run solar adoption elsewhere because it increases investment in innovation by international firms. This spillover underscores the need for international coordination to address climate change.
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Upcoming Events

2019 Apr 26

PhD Research Lunch

Repeats every week every Friday until Fri May 03 2019 except Fri Mar 22 2019.
12:00pm to 1:00pm

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