Tag Archives: Environmental Economics

This Tuesday, 10/25: Debate on WA Initiative 732 regarding a carbon tax.

Posted on by — No Comments ↓

Where: McIntyre 107 When: 4 – 5pm, Tuesday 10/25 The Economics Department is hosting a discussion of WA initiative 732 which seeks to create a revenue neutral carbon tax in Washington state to combat greenhouse gas emissions. Advocates from both the ‘pro’ and ‘con’ camps will be speaking. Yoram Bauman, economist for CarbonWA.org and one of the founders of I-732 will speak in favor of the measure. Brandon Houskeeper from the Association of Washington Business will make the case against the measure.

Hurricanes Increase GDP

Posted on by — No Comments ↓

In a prior post I took a deeper look at what the large epidemic, the Zika virus, will cost the world. Similar to Zika, category 3 storm, Hurricane Matthew, is a type natural “disaster” that will have an unstoppable effect on the economy. There are at least 200,000 homes along the coast from Florida to North Carolina at risk of damage from the storm surge alone. Due the potential to affect such a broad geographic area, some sources are claiming that Matthew could be one of the costliest hurricanes in U.S. history estimated to cost just Florida as much as Continue reading Hurricanes Increase GDP→

The Price is Wrong

Posted on by — No Comments ↓

This may not be the easiest pill to swallow, but worldwide, energy prices are far too low. In the United States, on average, the federal U.S. tax on gasoline has remained at merely 18 cents per gallon since 1993. We all know that there are negative effects that come with the overconsumption of nonrenewable energy, but is it reflected in the prices? When gas, or any other fossil fuel, is bought at market price, the cost fails to account for the environmental and social impacts that come with the production and consumption of these fuels. This issue is called a Continue reading The Price is Wrong→

Game Theory in International Climate Change Politics

Posted on by — No Comments ↓

Whether it’s in my personal or academic life, I always have this desire to figure out why people do the things that they do. Fortunately, there’s a branch of economics for that. This past fall, I took a microeconomics class where we touched upon a topic that I found especially fascinating called Game Theory. In case you don’t know what it is, Game Theory is a strategy of analyzing decision making wherein a model is made to figure out the optimal strategies for two or more parties in some sort of competitive situation. Game Theory is used not just in economics, but Continue reading Game Theory in International Climate Change Politics→

A New Trend in Emissions and Economic Progress

Posted on by — 1 Comment ↓

Two weeks ago, the International Energy Agency (IEA) reported that in 2014, there was a decoupling of economic growth and carbon dioxide (CO2) emissions. As the global Gross Domestic Product (GDP) grew 3%, global emissions totaled to 32.3 billion tons, which was the same amount emitted in 2013. There were many reasons for this paramount shift, but to sum things up, many countries in different stages of development are finding considerable and effective methods in curbing their carbon emissions on both a household and industrial level. This is the first time in 40 years that a halt in global CO2 emissions wasn’t tied to a huge Continue reading A New Trend in Emissions and Economic Progress→

Not All Energy Efficiency is Created Equally

Posted on by — No Comments ↓

We are constantly bombarded with advertisements of goods that market their innovations in efficiency. Whether it is a car with a higher MPG, or a washing machine that uses less water per load, companies are quickly realizing that environmental efficiency is a huge appeal to a broad range of consumers. Although energy efficiency with everyday goods is a step in the right direction, not all energy efficiency should be treated equally. In fact, some cases of energy efficiency might end up being more harmful in the long run. Although this may seem counterintuitive, it can be explained with Jevons Paradox. Continue reading Not All Energy Efficiency is Created Equally→

New Faculty Interview: Lea Fortmann

Posted on by — No Comments ↓

As promised, this week we have an interview with Lea Fortmann, new Assistant Professor for the Economics Department. (If you missed last week’s interview, here is a link to the interview with our department’s other newest member, Peter Sullivan.) Where did go you go to college? Most recently I graduated with my Ph D. from Ohio State university so there I was in the Department of Agricultural, Environmental, and Development Economics and prior to that I did a Master’s at the University of Washington in the Evans School of Public Affairs. So there I got my PMA and I did my undergrad Continue reading New Faculty Interview: Lea Fortmann→

Adverse Effects of Climate Change will not be Spread Evenly

Posted on by — No Comments ↓

We are probably all aware of the fact that the negative effects of climate change are escalating. One very important question is, which countries will reap the most consequences? A risk consultancy firm called Maplecroft released its 2014 Climate Change Vulnerability Index, which uncovers which countries will be likely to suffer the most by 2025. The analysis is based on three main factors: the ability of a nation to combat the effects through policy, exposure to extreme weather events, and the sensitivity of a country’s citizens to these extreme conditions (ie. health, agricultural/industrial dependence, etc.). The risk levels range from low to extreme, Continue reading Adverse Effects of Climate Change will not be Spread Evenly→

Keystone XL Economics Part II

Posted on by — 2 Comments ↓

Following up on Collin’s article yesterday, I want to add an additional perspective on the economics of the Keystone XL pipeline. First off, while the State Department report on the Keystone XL pipeline suggested that the pipeline will probably not increase greenhouse gas emissions, a report by the nonpartisan Congressional Research Service found that the pipeline would increase greenhouse gas emissions anywhere between 3 and 21 million metric tons annually, assuming that the pipeline will accelerate tar sands oil production. This is mainly due to the fact that refining tar sands oil is far more energy intensive than refining normal crude oil. Another environmental Continue reading Keystone XL Economics Part II→

The Keystone XL Pipeline

Posted on by — No Comments ↓

The Keystone XL pipeline is a proposed pipeline construction project that would funnel crude tar sand oil from Alberta Canada to refineries along the Gulf of Mexico in Texas. As this is a construction project that is both international and revolves around environmental issues, many interested groups are involved. Environmental activists argue against the project, saying that the construction is contradictory to progressive environmental standards. Canadian Prime Minister Stephen Harper and corporation TransCanada would see the pipeline put in tomorrow and say that construction will create jobs for and attract investment to the US. Ultimately, the decision is up to Continue reading The Keystone XL Pipeline→