Carbon Taxes on the Move: A U.S. Step Back and Canadian Leaps Forward

Up this morning atop MIT Technology Review:

The victory of climate change-denying Republican candidate Donald Trump was one of two big setbacks for U.S. climate policy earlier this month. The other was the resounding defeat of Washington State’s Initiative 732, which sought to prove that using fees on carbon emissions to cut existing taxes could provide bipartisan appeal for what economists consider to be the most efficient mechanism to cut greenhouse gas emissions: carbon taxes.

Washington State rejected the idea of a carbon tax by 59 percent to 41. In sharp contrast, just across the world’s longest border, carbon taxes are attracting politically diverse support. Four-fifths of Canadians will live in provinces with such taxes in 2017, and in 2018 all Canadians could be paying a carbon tax…

For the story see “Canada Moves Ahead on Carbon Taxes, Leaving the U.S. Behind

A few caveats and details left on the cutting room floor:

  • The carbon trading scheme operated by California, Quebec and Ontario has a rising floor price for credits, currently set at roughly C$15, that makes it act like a carbon tax at times (like now) of soft demand for tradable credits.
  • These states and provinces are — like carbon tax innovator British Columbia — coupling their carbon pricing schemes with regulations such as restrictions on coal-fired power that drive more reductions and do so at lower political risk. For more on this (and more) see my carbon pricing explainer in Ensia from this summer.
  • Canada’s promised emissions reduction for 2030 fails, like most national commitments made at last year’s Paris climate talks, to put global emissions on a trajectory to meet the Paris Agreement’s fundamental goal: holding global warming to well below 2 degrees C.

Trump’s Impact on Clean-Energy Businesses

Published today at MIT Technology Review:

President-elect Donald Trump is a self-declared climate-change denier who, on the campaign trail, criticized solar power as “very, very expensive” and said wind power was bad for the environment because it was “killing all the eagles.” He also vowed to eliminate all federal action on climate change, including the Clean Power Plan, President Obama’s emissions reduction program for the power sector.

So how will renewable-energy businesses fare under the new regime?

Trump’s rhetoric has had renewable-energy stocks gyrating since the election. But the impact could be far less drastic than many worst-case scenarios. “At the end of the day what Trump says and what is actually implemented are two completely different things,” says Yuan-Sheng Yu, an energy analyst with Lux Research …

For the whole story see “Trump’s Impact on Clean-Energy Businesses

Does Electrification Really Cause Economic Growth?

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Villages brightened from 2001 (L) to 2011 (R). Images: Burlig & Preonas / NOAA

Electrification is associated with a seemingly endless list of social and economic goods. Nations that use more power tend to have increased income levels and educational attainment and lower risk of infant mortality, to name but a few. So I was baffled to stumble across a pair of economic analyses on electrification in India and Kenya, posted last month, that cast serious doubt on what has long assumed to be a causal link between the glow of electricity and rural development.

“It is difficult to find evidence in the data that electrification is dramatically transforming rural India,” concludes Fiona Burlig, a fourth-year UC Berkeley doctoral student in agricultural and resource economics who coauthored the India study. “In the medium term, rural electrification just doesn’t appear to be a silver bullet for development.” Continue reading

Wind Could Provide Over 26% of Chinese Electricity by 2030

Last month I argued that the primary reason Chinese wind farms underperform versus their U.S.-based counterparts is that China’s grid operators deliberately favor operation of coal-fired power plants. Such curtailment of wind power has both economic and technical roots, and it has raised serious questions about whether China can rely on an expanding role for wind energy. New research published today appears to put those concerns to rest, arguing that wind power in China should still grow dramatically.

The report today in the journal Nature Energy projects that wind energy could affordably meet over one-quarter of China’s projected 2030 electricity demand—up from just 3.3 percent of demand last year.

In fact the researchers, from MIT and Tsinghua University, project that modest improvements to the flexibility of China’s grid would enable wind power to grow a further 17 percent. That, they argue, means that China’s non-fossil resources could grow well beyond the 20 percent level that China pledged to achieve under the Paris Climate Agreement. Continue reading

The Natural Gas Accounting Gap

Last month the U.S. EPA admitted it was way off in its estimate of how much methane producers leak into the atmosphere in the process of wresting natural gas from the ground and piping it across the continent. It’s a big deal since methane is a far more potent greenhouse gas than carbon dioxide and likely responsible for a substantial fraction of the climate change we’re already experiencing. And it’s been a long time coming. For many years now methane measurements by airplanes and satellites have strongly suggested that methane emissions from the oil and gas patch could be double what EPA figures captured.

Today the online earth observation pub Earthzine has my take on an unusual research project that helped convince EPA — and the industry — to change their tune on methane emissions. Take me to the article…

Beetles, Cacti, and Killer Plants Inspire Energy Efficiency

What do you get when you mix a desert beetle, a pitcher plant, and a cactus? Pick the right parts and you get an extremely slippery surface with an uncanny capacity to condense and collect water, according to research reported today in the journal Nature.

The advance could be a big deal for the energy world because, when it comes to energy efficiency, condensation lies somewhere between a necessary evil and a major drag. Nuclear, coal, and thermal solar power plants, for example, require large heat exchangers to condense the steam exiting from their turbines so that they can raise a new round of hotter steam. For other devices, such as wind turbines and refrigerator coils, condensation is the first step towards energy-sapping ice formation. Continue reading

How the Paris Climate Deal Happened and Why It Matters

One month after the terror attacks that traumatized Paris, the city has produced a climate agreement that is being hailed as a massive expression of hope. On Monday the U.K. Guardian dubbed the Paris Agreement, “the world’s greatest diplomatic success.” Distant observers may be tempted to discount such effusive language as hyperbole, yet there are reasons to be optimistic that last weekend’s climate deal finally sets the world on course towards decisive mutual action against global climate change.

The birthing process clearly sets Paris apart from earlier efforts at global climate action, such as the Kyoto Protocol crafted in 1997. Only last-minute intervention by then U.S. Vice President Al Gore clinched a deal at Kyoto Continue reading