Some Inconvenient Truths about Climate Change Policy: The Distributional Impacts of Transportation Policies

Climate policy has favored costly measures that implicitly or explicitly subsidize lowcarbon fuels.We simulate four transportation sector policies: cap and trade (CAT), ethanol subsidies, a renewable fuel standard (RFS), and a lowcarbon fuel standard. Our simulations confirm that alternatives to CAT...

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Bibliographic Details
Main Authors: Holland, Stephen P. (Author), Hughes, Jonathan E. (Author), Parker, Nathan C. (Author), Knittel, Christopher Roland (Contributor)
Other Authors: Sloan School of Management (Contributor)
Format: Article
Language:English
Published: MIT Press, 2016-03-28T19:13:26Z.
Subjects:
Online Access:Get fulltext
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520 |a Climate policy has favored costly measures that implicitly or explicitly subsidize lowcarbon fuels.We simulate four transportation sector policies: cap and trade (CAT), ethanol subsidies, a renewable fuel standard (RFS), and a lowcarbon fuel standard. Our simulations confirm that alternatives to CAT are 2.5 to 4 times more costly but are amenable to adoption due to right-skewed distributions of gains. We analyze voting on the Waxman-Markey (WM) CAT bill. Conditional on a district's CAT gains, a district's RFS gains are negatively correlated with the likelihood of voting for WM. Our analysis supports campaign contributions as a partial mechanism. 
520 |a University of California, Davis. Institute of Transportation Studies 
546 |a en_US 
655 7 |a Article 
773 |t Review of Economics and Statistics