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This paper provides a detailed, cross-model analysis and discussion of the implications of carbon tax scenarios on changes in sectoral output, energy production and consumption and the competitiveness of the United States’ economy. Our analysis focuses on the broad patterns apparent across models in both qualitative and quantitative terms at the sector level, with a focus on energy-intensive, trade-exposed sectors. We identify how variations in carbon tax trajectories and different options for using the revenue from the tax drive these results.

This paper analyzes changes in U.S. energy-intensive, trade-exposed (EITE) manufacturing over the past decade, through the lens of previously proposed climate policy measures. The American Clean Energy and Security Act of 2009 defined measures and thresholds for EITE eligibility and proposed compensatory allowances designed to reduce negative competitive impacts to domestic industry and to prevent emissions leakage. We undertook a retrospective analysis of the 2009 eligibility criteria, using the same methods with more recent data to examine trends over the 2004–2017 period. We find that energy intensity, emissions intensity, output, and emissions have fluctuated with economic conditions, and defining measures and thresholds that remain informative is challenging. Had ACES been enacted as written and not revised, the number of sectors qualifying for rebates would have decreased from 39 to 26, after adjustment for the changes in North American Industry Classification System definitions. Emissions from the eligible sectors fell 26% across the three periods of analysis, while emissions from manufacturing as a whole fell 5%. We decompose the changes in emissions into scale and intensity measures based on a hybrid measure derived from Grossman and Krueger [(1993). Environmental impacts of a North American free trade agreement. In The US-Mexico Free Trade Agreement, PM Garber (ed.). Cambridge, MA: MIT Press] and Kaya and Yokoburi [(1997). Environment, Energy, and Economy: Strategies for Sustainability. Tokyo: United Nations University Press]. As an alternative, we perform the same analyses using the EPA’s Greenhouse Gas Reporting Program data. These data, not available when ACES was written, offer annual greenhouse gas estimates for facilities that emit more than 25,000 tons CO₂e annually. Finally, we draw some recommendations for future policy including (1) using measures that make price level adjustments straightforward or unnecessary, (2) keeping EITE policy focused on a small group of industries to minimize sectoral reclassification problems, (3) identifying industries prone to emissions leakage rather than just changes in output and (4) consider spatial heterogeneity of emissions and trade patterns.

About 140 countries have announced or are considering net zero targets. To explore the implications of such targets, we apply an integrated earth system–economic model to investigate illustrative net zero emissions scenarios. Given the technologies as characterized in our modeling framework, we find that with net zero targets afforestation in earlier years and biomass energy with carbon capture and storage (BECCS) technology in later years are important negative emissions technologies, allowing continued emissions from hard-to-reduce sectors and sources. With the entire world achieving net zero by 2050 a very rapid scale-up of BECCS is required, increasing mitigation costs through mid-century substantially, compared with a scenario where some countries achieve net zero by 2050 while others continue some emissions in the latter half of the century. The scenarios slightly overshoot 1.5^∘C at mid-century but are at or below 1.5^∘C by 2100 with median climate response. Accounting for climate uncertainty, global achievement of net zero by 2050 essentially guarantees that the 1.5^∘C target will be achieved, compared to having a 50–50 chance in the scenario without net zero. This indicates a tradeoff between policy costs and likelihood of achieving 1.5^∘C.

Based on the multi-regional input-output framework, this paper analyzed the labor and energy transfer embodied in interregional trade in China. Meanwhile, through estimating the energy intensity per unit of labor embodied in final products in each region, this study examines whether the empirical results are consistent with the theoretical hypothesis and provides relevant explanations and industrial development suggestions. Results show that east coastal region and central region are the two main participants in interregional trade. As for the labor embodied in trade, east coastal region is the largest exporter of embodied labor, though it has the highest wage among eight regions; in contrast, north coastal and southwestern region, with relatively low wage, are the two largest importer of embodied labor. As for the energy embodied in trade, northwestern region is the largest exporter of embodied energy. Further analysis indicates that the energy intensity per unit of labor in region with relatively low GRP (such as northwestern region) is the highest, whereas those in Beijing-Tianjin Region and south coastal region (with relatively high GRP) are the lowest. By analyzing the Revealed Comparative Advantage in each region, the paper finds that the main reason for this inconsistency lies in the industrial structure in northwestern and north coastal region, which are highly dependent in primary industries. Improving the infrastructure and upgrading industrial structure are important steps for these regions to transform the extensive growth mode.

From both a regulatory and development perspective, these are active, encouraging times for the expansion of energy storage resources (“ESRs”) in the United States. From a significant ruling of the Federal Energy Regulatory Commission (“FERC”) to the presentation and implementation of aggressive state initiatives, rapid ESR deployment continues unabated while ESR technology costs continue to decline precipitously. Undeniably, ESRs have arrived as a credible, useful component of a resilient and efficient grid. This chapter explores common ESRs and how they contribute to grid stability, the impact of regulatory agencies on the development of markets to compensate ESRs, how states are playing a pivotal role in advancing the development of ESRs, and the major factors that should be considered in the financing of ESRs.

In response to the sustainability challenges that the Los Angeles region is facing due to the climate crisis and an increasing population, UCLA launched the first university-led Grand Challenge in 2013 — the Sustainable LA Grand Challenge, thriving in a hotter Los Angeles. The long-term goals of this Grand Challenge are to transition Los Angeles County to 100% renewable energy, 100% local water, and enhanced ecosystem health by the year 2050. UCLA is leading this effort by coordinating research across disciplines, educating and training students to be the next-generation of problem solvers, and engaging stakeholders to create policy recommendations, technology breakthroughs, and partnerships that result in scalable urban sustainability solutions. Los Angeles County’s diversity in sustainability challenges, landscapes, and cultures make solutions implemented in Los Angeles relevant for megacities across the globe.

“The verdict is in. The world must act now to curb the cataclysmic effects of climate change. In NJ, we set a path to 100% clean energy by 2050, signed sweeping clean energy legislation and are protecting our land & water. Our children deserve nothing less.” — NJ Governor Murphy, November 24, 2018…

The news about climate change is increasingly bleak. Already, deep and consequential changes in the Earth’s systems, including the oceans, forests, and atmosphere, are occurring as a consequence of fossil fuel emissions. Looking ahead, scientists warn that the window of opportunity is rapidly closing for taking actions that could keep global average temperature increase to less than 2 Celsius degrees (C°) above the preindustrial era, the limit many scientists believe is needed to prevent potentially catastrophic effects of climate change. This chapter describes the scenarios for transitions in energy, agriculture, and land use that together are sufficient to limit global average temperature increase to 1.5–2 C°. These changes are not inevitable but will require urgent and extraordinary efforts to align policies, overcome financial bottlenecks, and speed market adoption of new solutions. Our assessment in the RMI Positive Disruption report/paper indicates that such changes may still be within reach, provided that enough subnational, national, international, and especially private-sector and civil-society actions can be launched and aligned to take full advantage of globally scaled production and deployment of clean energy technologies.

The World Nuclear Industry Report (WNISR) is an annual assessment of the status and trends in the commercial nuclear industry. The report has, for the past 15 years, monitored global construction, operation and closure of reactors and makes comparisons with the developments of renewable energy and the implications for climate change.

The article on the Climate Science Special Report: 4th U.S. National Climate Assessment (NCA4), Volume I, summarizes the basis and the requirements for developing U.S. national climate assessments. The reader is referred to that material, as it is not repeated here. Instead, the focus in this chapter is on NCA4, Volume II, which is an assessment of climate-related impacts, risks, and adaptation in the United States. NCA4, Volume II (USGCRP, 2018), was published on November 23, 2018, and the entire assessment report is available at NCA2018.globalchange.gov…

Wind turbines and Solar Photovoltaic (PV) electric energy generators are the lowest cost producers of electricity available in 2019, costing about half as much as a new coal plant’s electric energy (Lazard’s Levelized Cost of Energy Analysis, 2018). They have the important characteristic of delivering electricity without releasing greenhouse gases like carbon dioxide (CO₂). Yet, almost all experts and plans for the future say that wind and solar will not be dominant contributors to electricity generation for the next couple of decades. They say we must continue fossil fuels with their associated greenhouse gases because of problems with renewable generators…

The chapter focuses on the energy transition as a necessary prerequisite for developing a green economy. The features of the new energy transition are based on the introduction and use of clean technologies, such as renewable energy and hydrogen. The urgency of taking drastic measures to transition to green energy is connected with the speedy solution to climate problems on the planet. The countries are actively taking measures to decarbonize economic processes; businesses are adopting business strategies that include reducing the negative impact on the environment and introducing green technologies. The paper analyzes current trends in the energy sector to identify the readiness of a new energy transition to the principles of a green economy.

Energy-based assets are showing increased susceptibility to volatility arising out of geo-political, economic, climate and technological events. Given the economic importance of energy products, their market participants need to be able to access efficient strategies to effectively manage their exposures and reduce price risk. This chapter will outline the key futures-based hedging approaches that have been developed for managing energy price risk and evaluate their effectiveness. A key element of this analysis will be the breadth of assets considered. These include Crude and Refined Oil products, Natural Gas and wholesale Electricity markets. We find significant differences in the hedging effectiveness of the different energy markets. A key finding is that, Natural Gas and particularly Electricity futures are relatively ineffective as a risk management tool when compared with other energy assets.