{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

PO 241 - Final Notes

PO 241 - Final Notes - Energy Policy Rossell opposite of...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Energy Policy – Rossell opposite of CMCC 1. Energy Characteristics: 1) Tradable Good 2) Price effects production and consumption. 2. Energy Policy is defined as: 1) government regulation of price 2) government regulation of energy production through subsidies, tax breaks to businesses for specific energy 3) government regulation of energy consumption through tax breaks, handouts to consumers for changes in consumption of specific energy 3. Bush administration energy bill – Costs $50 billion (Congressional budget estimate) over the next decade and almost all of it is unnecessary or a give away to businesses – What is necessary should be called energy policy. 4. Abolish Department of Energy (Created 1977 by Carter) and do nothing in field of energy – government should intervene where there is market failure: 1) Moral/Social Injustices/Inequalities 2) Enforce rules of the game (Technical monopolies – i.e. cable, electricity, water) 3) Negative externalities (i.e. Pollution ← government must regulate) 4) Positive externalities (i.e. defense, education) 5. Traditional Energy – Coal, Oil, Gas etc 6. Alternative Energy – Solar, Wind, Hydrogen 7. Direct government regulation produces 4 Negative Impacts: 1) Money used to pay from something marketplace can regulate is money taken away from something valuable that only government can provide: pollution control, poverty reduction/elimination, ed, defense, 2) Government subsidies and tax breaks to business encourage inefficient business that go out of business when subsidy ends 3) Government subsidies/tax breaks create an immoral climate of rent seeking and cheating 4) Government has no idea what will be the most efficient energy of the future: the marketplace does 8. Deal With Energy externalities directly: Defense Policy – Petroleum Stockpile (strategic petroleum reserve in salt caves off coast of Louisiana) Welfare Policy – Give Poor $ as function of cost of living (includes energy) or if that is politically infeasible give voucher for energy Environmental Policy – impose sanctions/negative incentives for pollution 9. Goal of Environmental Policy – Clean air, water, safe food and visually attractive natural landscape. 10. Command and Control – Regulations specifying pollution standards, emissions and techniques 11. Hybrid C&C/MI – Govt market in pollution rights (tradable discharge permits) 12. MI – Pollution tax for effluent fees (charge for pollution) 13. History of US Environmental Protection – Always been C&C 14. Water Pollution Refuse Act 1899 – Limit debris in navigable streams 1984-1966 State enforcement with fed funding, however, pollution doesn’t stop at state boundaries Clean Water Restoration Act 1966 – 1 st fed policy. Dept of Interior enforce water quality.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}