Internalizing the Climate Externality: Can a Uniform Price Commitment Help?
It is difficult to resolve the global warming free-rider externality problem by negotiating many different quantity targets. By contrast, negotiating a single internationally-binding minimum carbon price (the proceeds from which are domestically retained) counters self-interest by incentivizing agents to internalize the externality. In this contribution I attempt to sketch out, mostly with verbal arguments, the…
Overcoming the Copenhagen Failure with Flexible Commitments
The fundamental issues presented by climate change are first, that the global environment is a global public good and second, the question of how to share the burden of providing a better climate. Everyone would like to “free ride” on the efforts of others, but there is disagreement over who is free riding. The Kyoto…
Negotiating effective institutions against climate change
In environmental matters, the free riding generated by the lack of collective action is aggravated by concerns about leakages and by the desire to receive compensation in future negotiations. The dominant “pledge and review” approach to mitigation will deliver appealing promises and renewed victory statements, only to prolong the waiting game. The climate change global…
An International Carbon-Price Commitment Promotes Cooperation
To promote cooperation in international climate negotiations, negotiators should focus on a common commitment. Such commitments have the advantage of facilitating reciprocal “I will if you will” agreements in a group. Reciprocity is the basis for cooperation in repeated public goods games, and a uniform price would provide a natural focal point for a common…
All quiet on the western front? Transmission capacity development in the Nordic electricity market
Infrastructure plays an obvious and crucial role in electricity markets. Physical infrastructure must exist for the supply to meet demand in real time. In addition, it accommodates the efficient exchange of cost-efficient production across borders, and can bean important part ofsharingresourcesforreliabilitypurposes.However, in the historically successful Nordic electricity market, the cross-border transmission grid investments are lagging…
Heterogeneity of State Shale Gas Regulations
The rapid rise in shale gas production has affected the role and importance of regulatory policy at all levels of government. As the primary regulator in this area, state level regulatory changes are particularly significant. As shale gas production increases, some states are updating their regulations, while others maintain dated rules, put in place prior…
The Shale Gas Revolution:Introduction
Macroeconomic Impacts of LNG Exports from the United States
In contrast to what has been a common belief still ten years ago, the prevailing wisdom now is that U.S. natural gas demand can be met entirely with natural gas produced domestically and at relatively low prices (around $5/MMBtu). Moreover, there might even be the opportunity for the U.S. to become a net exporter of…
A Retrospective Review of Shale Gas Development in the United States: What Led to the Boom?
This paper reviews the economic, policy, and technology history of shale gas development in the United States. We aim primarily to answer the question of what led to the shale gas boom in the United States to help inform stakeholders in those countries that are attempting to develop their own shale gas resources. Our review…