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Harvard Kennedy School

Spring 2016
Energy Policy Analysis


Tuesdays and Thursdays, 10:15–11:30, L382


Joseph E. Aldy
Taubman 382
Office hours: Tuesdays, 3:00–5:00 by appointment via
Faculty Assistant: Carlos Paez,

Teaching Fellow:

Megan Bailey
Office hours: Thursdays, 2:00–4:00, Taubman Study Carrel 5

The Course
This course provides an overview of energy policy issues with an emphasis on the analysis necessary to
frame, design, and evaluate policy remedies to energy problems. The course is intended for doctoral
students interested but not necessarily specializing in energy issues. The course is offered in support of
the Harvard University Center for the Environment (HUCE) Graduate Consortium on Energy and
Multivariate calculus and permission of the instructor. To enroll in the course, you should (a) register
through the regular registrar process; and (b) submit an application via this
URL: .
There is no required text for the course. Assigned readings will be available through the API-164 course
website. Note that most readings on this syllabus have direct hyperlinks for online access by Harvard
students in the readings list below. Readings should be completed prior to class.
* readings should be given priority.


Energy Policy Paper: 50%
Each student will define an energy policy problem of interest and provide: (i) a one page précis of
the policy issue with identification of the key analytical questions and associated readings; (ii) a 15minute in-class presentation; and, (iii) a final paper (submitted in both hard-copy and electronic
versions) that presents the research question and analysis that addresses this question or describes
a research plan, including the tasks going forward in order to address the selected energy policy
issue. Students may opt to pair with a fellow student on this project.
Policy Analysis: 20%
Students may work together in groups in undertaking the modeling analysis, but each student must
submit an individual memo summarizing the results of the analysis. Students must also note who
they worked with on their submitted memo.
Participation in classroom discussion: 20%
Contribution to classroom discussion, with an emphasis on comments reflecting reading and
providing value-added to the conversation, will be evaluated. Unexcused absences will adversely
affect participation grade.
OPEC Exercise: 10%
Students will be assigned to groups that will each play the role of an OPEC producer. Each group will
submit daily production decisions over 10 business days and two brief memos (less than one page
each) describing their production strategies.
Complete descriptions of these assignments will be provided over the semester. Course grading will
follow the Harvard Kennedy School recommended grade distribution.


3. 12. 10. 4. 15. 20. 17. 18. 2. Price Instruments Quantity Instruments Performance Standards Instrument Choice Energy Subsidies Liability and Insurance Innovation and R&D Policy 21-25. 13. 11. Student Presentations (April 12 – April 26) 3 . 19. 5. 16. 6. 7.Schedule of Course Meetings Rationale for Energy Policy (January 26 – February 16) 1. 9. Imperfect Competition: Oil Markets Imperfect Competition: Oil Markets (continued) Externalities and Public Goods International Policy Governance Macroeconomics of Energy Shocks Distributional Concerns Libertarian Paternalism Evaluation of Energy Policy (February 18 – March 8) 8. Benefit-Cost Analysis Framework Valuing Mortality Risk Reductions Social Cost of Carbon Catastrophic Risks Discounting Private Benefits Design of Energy Policy (March 10 – April 7) 14.

J. and S. Working Papers.G. and the U. NBER Working Paper 20280. Weinstein. Phil and Robert E. **Anderson. and Academic Press Hotelling. NBER Working Paper 18967. Inscrutable OPEC? Behavioral Tests of the Cartel Hypothesis. The Economics of Energy Security. and Pindyck. Newell. J. Cuddington. Salant. Technological Change. and Moss. Depletion. The Energy Journal 25(4).. Kellogg. 2005. Boyce. 2004. R. and Xiong.S. and Non-Technical Yergin. G. Hotelling Under Pressure. Vernon. 2015. Smith.S.S. 2003.” University of Calgary. 4th Edition. Readings: Non-Academic Reports Gordon. American Economic Review. The Numbers Say Yes.M. Metcalf. The Case Against Government Intervention in Energy Markets: Revisited Once Again. **Pindyck. 2009. “Plucking a Goose of Unknown Size: Optimal Rent-Extraction with Exhaustible Resources.T. 2013... Harry G. Karadeloglou. The Energy Journal 25(1). and R. The Global Energy Outlook. Money. The Energy Journal 9(3): 7-29. Is an Oil Tariff Justified? An American Debate: II. Does OPEC Matter: An Econometric Analysis of Oil Prices. "Optimal Consumption of Depletable Resources. December. The Prize: The Epic Quest for Oil. R. NBER Working Paper 19729. 2005. The simple economics of commodity price speculation. Done That. Journal of Law and Economics 40(2). W. Readings: Policy Briefs. Hogan. 1988. American Economic Review 104(6): 1698-1734. Petroleum Industry. D. Press. Iler. and Power. and M. Kellogg. Daniel. Griffin. 2014.January 26: Imperfect Competition: Oil Markets Readings: Journal Articles. C. 1997. Jason E. Sanchez. R. Cambridge: MIT Press.R. Robert Clark. 570-594.E. 2013.K.E. Gains to Producers from the Cartelization of Exhaustible Resources. M. Washington Post op-ed. 2010. John R and Jennifer L Winter. May 21. The Incentive to Cheat: An Empirical Analysis of OPEC.L. 2013. 1975. Kaufman. Carranza. Journal of Political Economy 39(2): 137-175. Policy Analysis 628. NBER Working Paper No. Energy Price Controls: Been There. 79-92. Viscusi. 2001. 4 . Zeckhauser. Verleger. April. and Jean-Francois Houde. and William W. New Republic. 2008. Juan Esteban. J. R. Breaking the Boom-Bust Oil Cycle. Richard L. and Gilbert E. 2014. Harrington and J. R. Review of Economics and Statistics 60(2). The Effect of Uncertainty on Investment: Evidence from Texas Oil Drilling. w18951. 1931. 1978. 501522. The Economics of Exhaustible Resources.. Metcalf. * Bordoff. Litan." Quarterly Journal of Economics 89. J. Knittel.T.M. Price Controls and Market Structure: Evidence from Gasoline Retail Markets. R. S. New York: Free Press. The Journal of Industrial Economics 63 (1) Broadman. Dees. 2001. C. January 6. W. and S. H. July. Economics of Regulation and Antitrust. P. S.

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and K.” American Economic Review.” National Academies Press. “Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. RFF Weekly Policy Commentary. Efficient Pollution Regulation: Getting the Prices Right. Richard and Robert N. Ian W H and Kenneth A. 1988. Coady.C. Neidell.. E. S.Q. Land Economics 73(2): 224-239. Energy Production and Health Externalities: Evidence from Oil Refinery Strikes in France. 1997. The Hidden Costs of Producing and Consuming Energy.Q. New York: Cambridge University Press. * Muller. 2014. Private Property and Economic Efficiency: A Study of a Common-Pool Resource. Dallas. A Comment on “Efficient Pollution Regulation: Getting the Prices Right. Mansur. 6 . 1990. Cambridge University Press. Journal of Law and Economics 3: 1-44. May. and K. E. Review of Economic Studies 81: 535-571 Ian W. and William Nordhaus. “Chapter 1. 2005. Nicholas Z.A. 2014. D. R. Squires. The Tragedy of the Commons. Samuelson. D. Holland. Stavins. Oxford Univ. 2011. American Economic Review 101. and Winston Harrington. Washington.H. 2015. Readings: Non-Academic Reports Schmalensee. Fox. 2007.. Journal of Law and Economics 43(2). NBER Working Paper 18974.T. 2000. Barrett. Parry. ‘Second Best’ Adjustments to Externality Estimates in Electricity Planning with Competition. R. P. Yates. January 29. Press. 2012. 1960. 2015. and Randall Lutter. Grafton. and Non-Technical **Cropper. 2000. A Guide to Economic and Policy Analysis of EPA’s Transport Rule. Maureen. William. Yale University Press. “Summary for a Concerned Citizen” Elinor Ostrom. Robert Mendelsohn. N. 2011.February 2: Externalities and Public Goods Readings: Journal Articles. D. Fraas. Working Papers. The Analysis Group. Why Cooperate? The Incentive to Supply Global Public Goods. Pounds That Kill: The External Costs of Vehicle Weight. Shang. Journal of Economic Literature 45. I.J. Science 162: 1243-1248. Anderson. 1968.” Governing the Commons. Does Britain or the United States Have the Right Gasoline Tax? American Economic Review 95(4). Nordhaus. Margaret Walls. The Pure Theory of Public Expenditure.P. D. and Robert Mendelsohn. Krupnick. Oates. Grafton. A Question of Balance: Weighing the Options on Global Warming Policies. and Academic Press ** Parry. Lavaine. Coase. and A. Readings: Policy Briefs. 2010. Fox. and Wallace E. American Economic Review 99(5): 1714-1739. 2007.. and B. Muller. June. March.J. William J. Parry. Michael and Maximilian Auffhammer. 2008. 1954. Automobile Externalities and Policies. Ronald H. Press. and M. Environmental Accounting for Pollution in the United States Economy. Scott. The Theory of Environmental Policy. Nicholas Z. G. 2009.” Journal of Law and Economics 43(2). The Problem of Social Cost. How Large Are Global Energy Subsidies? IMF Working Paper WP/15/105. Muller. **National Research Council (2010).. L. Karen Palmer and Alan J. “Private Property and Economic Efficiency: A Study of a Common-Pool Resource. Sears. Arthur G. Environmental Benefits from Driving Electric Vehicles? NBER Working Paper 21291. Small. Review of Economics and Statistics 36(4): 387-389. Summary (3-21). April.Z. Squires. Baumol. Burtraw.. Hardin.

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Climate Tipping and Economic Growth: Precautionary Capital and the Price of Carbon. July. and Environmental Economics. Robert S. 2009. Uncertainty in environmental economics. Managing Catastrophic Risk. Prospects for US Nuclear Power After Fukushima. Review of Environmental Economics and Policy 5(2): 240-257. Commentary. Climate Change Policy: What Do the Models Tell Us? NBER Working Paper No. 19244. 2011. Lucas W. 2000. R. Journal of Risk and Uncertainty. On Welfare Frameworks and Catastrophic Climate Risks. Thin Tails. Nuclear Nonproliferation. 2013. 2011. Press.March 1: Catastrophic Risks Energy Policy Analysis Paper Précis due. Fukushima Daiichi: Implications for Carbon-Free Energy. Submit a one-page précis of your chosen energy policy issue with identification of the key analytical questions and associated readings. Scott.S. Martin. Fat Tails. Davis.. The Economics of Tail Events with an Application to Climate Change. Frederick and de Zeeuw. April. Robert S. Working Papers. Climate Treaties and Approaching Catastrophes. **Kunreuther. Second Edition. Readings: Journal Articles. Pricing Carbon When We Don’t Know the Right Price: Despite the unknowns. Howard and Geoffrey Heal. Aart. and Climate Change Policy. **Barrett. 7(3). Robert M. Encyclopedia of Energy. 1(1):45-65. Review of Environmental Economics and Policy. Review of Environmental Economics and Policy 5(2): 258-274. Solow. University of California. Sustainability: An Economist’s Perspective. Robert S. and Academic Press ** Weitzman. November. 2013.. 2014. Millner. Hall. ** Nordhaus. 2013. Antony. Natural Resources. Norton. On Modeling and Interpreting the Economics of Catastrophic Climate Change. W. and Community Resilience. Workshop Report. February 2009. Berkeley. Economics of Catastrophes. William D. 2015. 2007. 2011. 2013. Haas School of Business. Integrated Environmental Assessment and Management. we should being to tax carbon. Pindyck. Include links to or copies of proposed readings. Journal of Environmental Economics and Management 65:310-325. OxCarre Research Paper 118. In Economics of the Environment: Selected Readings. Draft Paper. Van der Ploeg. Pindyck. (New York: W. The Economic and Financial Risks of a Changing Climate: Insights from Leading Experts. 2011. Regulation 36(2):43-46. Journal of Environmental Economics and Management 66(2): 235-250. 14 .) Zeckhauser. Howard L. and Non-Technical American Association for the Advancement of Science and Resources for the Future. 12(2-3). Pindyck. 2012. Readings: Policy Briefs. 1995. Pindyck. Review of Economics and Statistics.

et al. Caplin. K... D. and Robert S. 443-457. The Rate of Discount and the Application of Social Benefit—Cost Analysis in the Context of Energy Policy Decisions. and Economic Efficiency.. An Even Sterner Review: Introducing Relative Prices into the Discounting Debate.. C.” Committee on Health. 57. National Academies Press. B. pp. Does Economic Analysis Shortchange the Future? An Economic View of the Environment. Annual Review of Resource Economics. Circular A-94. Cropper... Journal of Political Economy 112(6): 12571268. Washington. Chapter 2.C. 349-350. Determining benefits and costs for future generations. Arrow et al. 11(1). DC: Executive Office of the President. and Irreversibility. “Intertemporal Equity.J.Day Pricing of Electricity. and Academic Press **Hausman. The Social Discount Rate. and Jerry A.. K. Heal. Climate Change 1995: Economic and Social Dimensions of Climate Change.. (1979). Newell. K. Uncertainty.S. G. Dennis J. Introduction. Avinash K. Groom. Resources for the Future Inc. 2013. Science 341(6144). R. reu008. Robert S.. Economic Policy (October 2008): 757–795. Washington. Cropper. Quarterly Journal of Economics 88(2): 312-319.. 2009. Review of Environmental Economics and Policy 2(1): 61-76. “Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. M. Review of Environmental Economics and Policy. Gollier. J. Robert N. B. Princeton University Press. Hausman (1980). Sterner. Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs. **Arrow. 1992.C Fisher. T. Correcting for Truncation Bias in the Analysis of Experiments in Time-of. . J. . & Hammitt. The Long-Run Discount Rate Controversy.. R. 2014. Discounting for Time and Risk in Energy Policy. 2012. et al. Uncertainty in Environmental Economics. Thomas and U. Should governments use a declining discount rate in project analysis?. Andrew and John Leahy. **Dixit. Phoebe Koundouri and Theologos Pantelidis. C. Chap 12 in RC Lind et al. A.. and A. R. K. James P. & Sterner. Declining discount rates: Economic justifications and implications for long-run policy. How Should Benefits and Costs Be Discounted in an Intergenerational Context? Resources for the Future Discussion Paper 12-42. J. Working Papers. Cropper. L. Arrow. Press. Lind. G.. Christian. Gollier. Discounting. Review of Environmental Economics and Policy 1(1). Kenneth J. T. The Bell Journal of Economics.” Chapter 4 in Bruce. Readings: Non-Academic Reports U. **Arrow. Environmental. C. 2014.63. G. Bell Journal of Economics 10(1): 33-54.. April 27. Resources for the Future Discussion Paper 12-53. 1974. Heal. National Research Council (2010). 6(1). Gollier. Washington DC. M. Newell. Gollier. How Should Benefits and Costs Be Discounted in an Intergenerational Context? The Views of an Expert Panel. Aigner. Princeton. 2008. and Other External Costs and Benefits of Energy Production and Consumption.. C. 273-295.March 3: Discounting Readings: Journal Articles. Pindyck (1994) Investment Under Uncertainty.. Martin Persson. 15 .. M. 2012. Environmental Preservation. Groom. Cambridge University Press. 2008. **Arrow. 2013. Readings: Policy Briefs. & Sterner. 2007. Individual Discount Rates and the Purchase and Utilization of Energy-using Durables. **Pindyck.. Office of Management and Budget.. (1996). and Non-Technical **Stavins. Maureen L.

Allcott. 603-652. 2006. and Florian Zettelmeyer. 2012. Gayer.. Busse. Are consumers myopic? Evidence from new and used car purchases. Christopher R. Readings: Non-Academic Reports NHTSA Fuel Economy Website Department of Energy Appliance Efficiency Standards Website Readings: Policy Briefs... Press. 2013. and Academic Press **Viscusi. T.” In: Economics of Regulation and Antitrust. DC: Brookings Institution. w19044). Gillingham. A Better Approach to Environmental Regulation: Getting the Costs and Benefits Right. T. 2013. S.K. 107. and Joseph Harrington. K.. Hunt. 16 . Rapson. Journal of Regulatory Economics 43(3): 248-264. Overriding Consumer Preferences with Energy Regulations. T.. “Chapter 18: Economic Regulation of Energy. 2011. John Vernon. Sallee. February. D. W Kip. Is There an Energy Efficiency Gap? Journal of Economic Perspectives 26(1): 3-28. **Gayer.S. The Economics of Improving Fuel Economy. Woollacott. Three Steps to Improving Cost-Benefit Analysis of Environmental Regulatory Rulemaking. Gayer.. Working Papers. Working Paper. William A. The Hamilton Project Discussion Paper 2011-6. Rational Inattention and Energy Efficiency. 2011. January. July 5. Cambridge: MIT Press. Resources 163:21-25. The Journal of Law & Economics 57 (3): 781–820. Meghan R.March 8: Private Benefits Readings: Journal Articles. J. The Rebound Effect and Energy Efficiency Policy. FEEM Working Paper No. American Economic Review 103(1): 220-256. National Bureau of Economic Research. No-regrets climate policy-the ancillary benefits and welfare costs of CO2 abatement in the US electricity sector. RFF Weekly Policy Commentary. and Wagner. 2015. and Wing.2014. Borenstein. Viscusi. 2015. and W. James M. I. and Michael Greenstone (2012). G. 2000. and Non-Technical Pizer. Knittel. Washington. 2014. A microeconomic framework for evaluating energy efficiency rebound and some implications (No.

Energy Policy 86. L. National Tax Journal 62(3). Pizer. An Emissions Plan Conservatives Could Warm To. The Fundamental Law of Road Congestion and Its Implications for Transportation Policy. October 20.. 2013.. Laffer. The Political Economy of an Energy Tax: The United Kingdom’s Climate Change Levy.E. West. Christopher R. Hughes. W. Greg. Journal of Economic Literature 48(4). Taxing Energy in the United States: Which Fuels Does the Tax Code Favor? Manhattan Institute Center for Energy Policy and the Environment. Davis.” Journal of the Association of Environmental and Resource Economists 2(4): 565-595. Thomas. 2011. Press. 2008. “Competitiveness Impacts of Climate Change Mitigation Policies. Evidence of a Shift in the ShortRun Price Elasticity of Gasoline Demand. How Regressive Are Fuel Taxes? A Comparison of Countries from Around the World. Inglis. Goulder. Readings: Non-Academic Reports Lazzari. Richard G. N. RFF Weekly Policy Commentary. Jonathan E. Should Distributional Considerations Hold Up Higher Gasoline Taxes? RFF Weekly Policy Commentary. Tax Policies for Low-Carbon Technologies. B. Climate change policy's interactions with the tax system. Gilbert E. December 27. Congressional Research Service Report for Congress. 2010. 2011.March 10: Price Instruments Readings: Journal Articles. Newell.A. M. and William A. Journal of Applied Econometrics. *Metcalf. Bob and Arthur B. Why Tax Energy? Towards a More Rational Policy. Ian W. New York Times op-ed. Gilbert E. Joseph E. Turner. September. Energy Economics 40: S3-S11. 17 . and Academic Press *Aldy.674-683. Murray. 2005. Readings: Policy Briefs. *Sterner. Parry. J. Lawrence H. RFF Weekly Policy Commentary. 2009. pp. 2010. 2008. L. The Energy Journal 29(1). ** Aldy. and Kilian. Working Papers. Eduardo Ley. Newbery. Pizer. Metcalf. Aldy. and Non-Technical *Mankiw. 2008. and W.. 2015. Energy Tax Policy: History and Current Issues. A Tax-Based Approach to Slowing Global Climate Change.A.H. 2008. British Columbia’s revenue-neutral carbon tax: A review of the latest “grand experiment” in environmental policy. 2009. 2006. and Rivers. Joseph E. 2009. Salvatore. David M.H. National Tax Journal 61: 493-517. Alan J. February 19. Parry. June 22. Knittel and Daniel Sperling. Estimating the effect of a gasoline tax on carbon emissions. Pearce. Sarah E. May 2. and Ian W. Krupnick. 2015. Greg Mankiw’s Blog. The Energy Journal 26(1). The Pigou Club Manifesto. Designing Climate Mitigation Policy. David.. Energy Economics 28(2): 149-158. 2006.

The Journal of Economic Perspectives 27(1). Bailey. Dallas Burtraw. The Energy Journal 31(3). Renewable Energy Standards: Less Effective. EPA Analysis of the American Clean Energy and Security Act of 2009. Climate Policy. and Non-Technical Bohringer. Nature Climate Change 2: 596-599. Joseph E. and Stock. 1998. Stavins. More Costly.P. Matthew J. **Richard Schmalensee et al. 2009. 2010. Pizer.. 2454 in the 111th Congress. Goulder. Acid Rain Program. The Energy Journal 30(3). 2009. Joseph E.S. May. Voluntary Compliance with Market-Based Environmental Policy: Evidence from the U.S. Hasegawa. Why do states adopt renewable portfolio standards?: An empirical investigation. and E. L. SO2 Control by Electric Utilities: What Are the Gains from Trade? Journal of Political Economy 108: 1292–1326. R. and Yin. *Carlson. B. R. 2000. 18 .R. Curtis. Readings: Journal Articles. Analysis of Impacts of a Clean Energy Standard. Energy Information Administration. pp. Trendy Standards: Why Do States Adopt Sustainable Energy Portfolio Standards? Energy Policy 37. but Politically Preferred to Cap-and-Trade? An Economic View of the Environment... *Lyon. November. and Anthony A. Aldy. June. Joskow.N.S. P. Leiserowitz.H. Schmalensee. An Interim Evaluation of Sulfur Dioxide Emissions Trading. 2014. E. 1998. The cost of carbon dioxide abatement from state renewable portfolio standards. 2012. R. 2011. and Academic Press **Aldy. H. H. Christoph and Knut Einar Rosendahl. 87–102. and William A. May. January 11. Journal of Economic Perspectives 12(3):53-68. J. and Stavins. Knittel. NBER Working Paper 21742. National Clean Energy Standard. Due April 5. Washington: EIA. 2015. 2015.P. Resource and Energy Economics 36(2). Stavins. 2013. 2009. J.. Washington: EPA. Meiselman. R. NBER Working Paper 21343. T.. Schmalensee. Salant. M. Maureen Cropper. Should Cap-and-Trade Systems Be Supplemented with Renewable Portfolio Standards? RFF Weekly Policy Commentary. The Brookings Institution Hamilton Project Discussion Paper 2011-05.. Journal of Political Economy 107(5): 998-1033. Aldy. Issues in Designing U. Joseph E. Lessons Learned from Three Decades of Experience with Cap-andTrade. Promoting Clean Energy in the American Power Sector.. The Dynamics of Pollution Permits. Working Papers.R. Journal of Economic Perspectives 12(3): 69-88. Johnson. H. S. Montero. Robert N. The Pass-Through of RIN Prices to Wholesale and Retail Fuels under the Renewable Fuel Standard.332-350.March 22: Quantity Instruments Policy Memo Kyoto Protocol negotiations analysis and memo assigned. Readings: Policy Briefs. American Economic Review 88(4). The Market for Sulfur Dioxide Emissions. Kotchen. 1999. July 27. RFF Discussion Paper 15-20. Readings: Non-Academic Reports Environmental Protection Agency. 2015..P. 2011. 2009. Chandler. and S. Willingness to Pay and Political Support for a U. and Karen Palmer. C. 2011. Press. Markets for Pollution Allowances: What Are the (New) Lessons?. What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading. Jess. 1998.

Ian W. and James Sallee. **Anderson. Holland. Working Papers. Hughes. Journal of Economic Literature 45(2):373–399. K. Automobile Externalities and Policies. 255. "The Price of Gasoline and the Demand for Fuel Efficiency: Evidence from Monthly New Vehicles Sales Data. A Primer on Comprehensive Policy Options for States to Comply with the Clean Power Plan. FACT SHEET: Clean Power Plan Key Changes and Improvements. 2015 (August 31). 2011. E. Parry. 2014. 2008. Bushnell. and Burtraw. Holland. S. American Economic Review 101(4): 1375-1409.. Review of Environmental Economics and Policy req 021. University of California Energy Institute Working Paper. Journal of Economic Perspectives 17(4): 203-217. Stephen P. 2007. Strategic Policy Choice in State-Level Regulation: The EPA’s Clean Power Plan. J. Resources for the Future Discussion Paper 15-15." Working Paper. Ross. Christopher R. P. Hughes. Automobile Fuel Economy Standards: Impacts. 1992.P. 2014..H. Press. **Palmer. Journal of the Association of Environmental and Resource Economists 1(1).B. Crandall. Parry. Klier. and Paul..K. and Nathan C. Knittel. Margaret Walls. Portney. and Knittel. Fuel Economy. Mastrangelo. 19 . 2011. C.. Linn. Soren T. MIT CEEPR Working Paper 2011-016. and Joshua Linn. and W. and Alternatives. April. Parker. 2014. J. Sallee. Journal of Economic Perspectives 6(2): 171-180.97-134.. B..R. and James M.. H.R. A. The Review of Economics and Statistics 96(5): 779-795. and Non-Technical U. Gruenspecht. Efficiency.H. J. University of Illinois at Chicago. Gasoline Prices.W. D.. 2015.E. Carolyn Fischer. Thomas... and Murray. Nicholas Institute Working Paper 15-03. 2007. Should Fuel Economy Standards Be Tightened? The Energy Journal 28(4): 1-29. Ian Parry. Winston Harrington. 2003. R. EPA. and Ian Parry.March 24: Performance Standards Readings: Journal Articles. 2011. Fischer. The Economics of Fuel Economy Standards.W. M. Regulating greenhouse gases from coal power plants under the clean air act. Hunt Allcott and Nathan Wozny. C. and Winston Harrington. pp. Readings: Policy Briefs. Corporate Average Fuel Economy Standards. Some Inconvenient Truths about Climate Change Policy: The Distributional Impacts of Transportation Policies. 2015. Soren. and Academic Press **Anderson.S. Assessing Impacts of the Clean Power Plan on Southeast States.. Jonathan E. D. Hoppock. I. and the Energy Paradox. Harrington. Using loopholes to reveal the marginal cost of regulation: The case of fuel-economy standards.

K. The Journal of Environment & Development. Richard. Energy Policy.. 2007.L. Newell. Market-Based Policy Options to Control U. 38(9):4921-4932.L.A. 2012. March 21.S. A symmetric safety valve. 2010. Correlated Uncertainty and Policy Instrument Choice. Richard G. Jotzo. D. 2012. and Robert N. Readings: Policy Briefs..M. 1995. C. and Non-Technical *Parry.. ** Schmalensee.. Peter R. Greenhouse Gas Emissions. Weitzman. D. Issue Brief #5. M. 2008. Review of Economic Studies 41(4): 477-491. and William A. and W. Pizer. Holt. and William A. 21(2): 152-180. Pizer. Pizer. Stavins. Quantities. Andrew. Indexed Regulation. and Academic Press **Pizer. 2011. 2003. M. Working Papers. RFF Weekly Policy Commentary. 2015. and Shobe. Combining Price and Quantity Controls to Mitigate Global Climate Change. Journal of Public Economics 85(3): 409-434. I. Pizer. Journal of Environmental Economics and Management 30(2): 218–232. May 20. 2009. Joseph E. Containing the Cost of a Cap-and-Trade Program for Carbon Dioxide Emissions. 2015. 2011.. Metcalf. Readings: Non-Academic Reports Orszag. U. Unintended Consequences of Price Controls: An Application to Allowance Markets.March 29: Instrument Choice Readings: Journal Articles. The Promise and Problems of Pricing Carbon: Theory and Experience.H. Newell. Richard G. 2016. Journal of Environmental Economics and Management 76:32-50. Internationally-Tradable Permits Can Be Riskier for a Country than an InternallyImposed Carbon Price. and Kahn. 1974. G. Brian. Emissions Trading Versus CO2 Taxes Versus Standards. Regulating Stock Externalities Under Uncertainty. Harvard Project on Climate Agreements Discussion Paper 15-74. A Carbon Price for Australia: From Tax to Trading. Senate. W. Evaluating Policies to Increase the Generation of Electricity from Renewable Energy. 2008. Prices vs. 2009. William A. Robert N.W. Stocking.A. 2002. **Aldy. Economics of Energy & Environmental Policy 4(2):37-50. MIT CEEPR Working Paper 2011-008. Palmer. Burtraw. Stavins. Newell. Journal of Environmental Economics and Management 56(3): 221-233. CBO Testimony before the Committee on Energy and Natural Resources. M. Journal of Environmental Economics and Management 45(2 Supplement 1): 416-432. Frank. Review of Environmental Economics and Policy 3(1): 84103. Climate Policy Forum. Price and quantity collars for stabilizing emission allowance prices: Laboratory experiments on the EU ETS market stability reserve. 20 . Murray. Balancing Cost and Emissions Certainty: An Allowance Reserve for Cap-and-Trade. Journal of Economic Perspectives 23(2): 5-27. Weitzman. Internalizing the climate externality: Can a uniform price commitment help?. Press. Richard G.S. Journal of Environmental Economics and Management 63(1): 120-136. Weitzman. and William A.

" The Electricity Journal 20(9). Increasing the Momentum of Fossil-Fuel Subsidy Reform: A Roadmap for International Cooperation. OECD Publishing. Washington: CBO. October 25.67. Joskow. T. Congressional Research Service. **Arze del Granado. 2012. Siem Reap. 2010. August. 2014." The White House. Ryan. July. 2015 (March 12). 27-28). The Journal of Economic Perspectives. Lang. S. Burniaux. Francisco C. & Gibson. Borenstein. Washington: International Monetary Fund. 26(1). IEA. 2010.E. March 2. Chateau. 2012. Joint report prepared for the G-20. Federal Loan Guarantees for the Construction of Nuclear Power Plants. 2014. p. A Preliminary Review of the American Recovery and Reinvestment Act’s Clean Energy Package. Kerryn et al. Nairobi: UNEP. Metcalf.” IMF Working Paper WP/10/202. Gerarden. Direct Federal Financial Interventions and Subsidies in Energy in Fiscal Year 2013.L. S. Readings: Non-Academic Reports **Browner. The incidence of energy policy reform: fossil fuel subsidies in Southeast Asia. Energy Economics 27(6):873-894. Robert. 2008. Cambodia. Tax Policy and the Economy 24(1):1-34.L. OPEC. G. 2015. 2010. Congressional Budget Office. Capital versus Output Subsidies: Implications of Alternative Incentives for Wind Investment. J. **OECD. Comparing the costs of intermittent and dispatchable electricity generating technologies. “Mitigation Potential of Removing Fossil Fuel Subsidies: A General Equilibrium Assessment.” OECD Economics Department Working Papers. “Household energy demand and the equity and efficiency aspects of subsidy reform in Indonesia. In EEPSEA/EAAERE Conference on the Economics of Climate Change in Southeast Asia. Reforming Energy Subsidies. J.E. Oil and Natural Gas Industry Tax Issues in the FY2013 Budget Proposal.D. “The Unequal Benefits of Fuel Subsidies: A Review of Evidence for Developing Countries. Investment in Energy Infrastructure and the Tax Code. Mark Bolinger. C. 2010. K. International Institute for Sustainable Development. P. February (pp.March 31: Energy Subsidies Readings: Journal Articles. The Private and Public Economics of Renewable Electricity Generation. 853. and Burtraw. Cropper. Aldy. D. No.. Review of Environmental Economics and Policy. Coxhead. 2012. 2011. Using Biofuel Tax Credits to Achieve Energy and Environmental Policy Goals.. "Using the Federal Production Tax Credit to Build a Durable Market for Wind Power in the United States. The American Economic Review 101(3):238-241. Murray. and John M. Javier. 104(5): 569-74. 2007. R. and Academic Press **Aldy. Pirog. Wiser. de la Chesnaye. World Bank. Working Papers. "Briefing Memo: Renewable Energy Loan Guarantees and Grants. May. 2010. Joseph E. I. 2010. and J. United Nations Environment Programme. **Olivia. Energy Information Administration. (2008). Maureen L. Palmer. Reilly. 21 . et al. Working Paper. 2011. Brian C. and Galen Barbose. and Larry Summers. forthcoming.” The Energy Journal 29(1). 2011.. and Grainger.. How Effective Are US Renewable Energy Subsidies in Cutting Greenhouse Gases? American Economic Review. 2005.. Analysis of the Scope of Energy Subsidies and Suggestions for the G-20 Initiative. Carol.. and Sweeney. Congressional Budget Office. Ron Klain. Cost-effectiveness of renewable electricity policies. J.

RFF Weekly Policy Commentary. 2008. 5/15/11 Coady. Eliminating Subsidies for Fossil Fuel Production: Implications for U. Harry and David R. Science and Technology. A New Strategy to Spur Energy Innovation. Fewer wind curtailments and negative power prices seen in Texas after major grid expansion.S. Just. and Non-Technical **Wind Jammers at the White House. Pete Ogden. July. International Institute for Sustainable Development Global Subsidies Initiative Homepage/News 22 . 2010. U. Press.2. Lee. 2010. June 9. Becker-Posner Blog. David P. Tax Subsidies for Oil Companies – Posner. Blog. Becker-Posner. De Gorter. Today in Energy. Allaire. Darmstadter. April. Oil and Natural Gas Markets. and Rising. 2011. Version 1. Loan Guarantees Reconsidered. Petroleum Subsidies: Costly. 5/15/11 **Subsidies to Oil and Other Energy Sources – Becker. Joel and Joshua Linn.Readings: Policy Briefs. The Forgotten Flaw in Biofuels Policy: How Tax Credits in the Presence of Mandates Subsidize Oil Consumption. November 12. **The U.S. 2008.S.S. 2009. John Podesta and John Deutch. 2010. RFF Weekly Policy Commentary. Maura and Stephen Brown. Resources for the Future Issue Brief 09-10. Partnership for Renewable Energy Finance. U. Wall Street Journal. October 4. Prospective 2010-2012 Tax Equity Market Obseervations. Inequitable. RFF Policy Commentary. Energy Information Administration. 2014 (June 24).

23 . and Non-Technical *Greenstone. Journal of risk and Uncertainty. 2010. Pp. 2015. Environmental Assets and Liabilities: Dealing with Catastrophic Risks. Analytical Perspectives: Budget of the United States Government. Wall Street Journal. 2010. 2010. Hearing on the Liability and Financial Responsibility for Oil Spills Under the Oil Pollution Act of 1990 and Related Statutes. Real-Time Economic Analysis and Policy Development During the BP Deepwater Horizon Oil Spill. Testimony before the House Transportation and Infrastructure Committee. RFF Backgrounder. Determining the Price of Price-Anderson. S. N. 2011. 4(2). Vanderbilt Law Review 64(6): 1795-1817. pp. Shavell. and Wiseman. 301-327. ** Heal. Insurance. M.167175. November.. Joseph E. Incentives and government relief for risk. Chapter 20: Credit and Insurance.1523. Epstein. 99. Vanderbilt Law Review 64(6): 1717-1765.. Kip W.A. and Academic Press **Aldy. Readings: Journal Articles. Working Papers. Press. Regulation. Deepwater Horizon and the Patchwork of Oil Spill Liability Law. Geoffrey and Howard Kunreuther. ** Viscusi. 2011. 1991. Readings: Policy Briefs. A. Market Approach to Regulating the Energy Revolution: Assurance Bonds. Rev.. 2013. Corrective Taxation versus Liability as a Solution to the Problem of Harmful Externalities. p. 2003. Working Paper of the Wharton Risk Management and Decision Processes Center. June 9. 2011. June 16. Winter 2002/2003: 26-30. A. FY2016. and the Certain and Uncertain Risks of Hydraulic Fracturing. BP Doesn’t Deserve a Liability Cap. and Richard J.. D. Heyes. Journal of Law and Economics 54(S4): S249-S266. R. Iowa L. Kaplow. Dana. Deterring and Compensating Oil Spill Catastrophes: The Need for Strict and Two-Tier Liability. May.A. L. Zeckhauser. H.J. Richardson.April 5: Liability and Insurance Policy Memo Kyoto Protocol targets and trading analysis and memo due. 2008. Readings: Non-Academic Reports Office of Management and Budget.

"Aligning Utility Incentives with Investment in Energy Efficiency. and Non-Technical **Newell. Adam B. Should We Give Up After Solyndra? Optimal Technology R&D Portfolios under Uncertainty. “U. and Demonstration: Funding Sources. Kenneth. Daron. Climate Technology Deployment Policy. The Environment and Directed Technical Change. structure of electricity prices and technological change of energy use. Washington.495-502. MIT-IPC-Energy Innovation Working paper 11-003. Newell. Climate Technology Research Development. Issue Brief 10 in Assessing U. K. A. Climate Policy Options. Fisher-Vanden. pp. “Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts. Increasing Need. and Santen. Harvey. 2010. 2011. Quarterly Journal of Economics 114(3). Energy Economics 40. 2011 Energy Innovation: Architecting the Consumer Side of the Grid for Energy Efficiency.D.” Energy Policy. 1999. 2008. and Kat Donnelly..S. The American Economic Review 102 (1). 2008. M.. Verdolini. C. Leonardo Bursztyn. RFF Weekly Policy Commentary. National Action Plan for Energy Efficiency. US House of Representatives. *Newell. Learning-by-Doing and the California Solar Initiative. and the Feasibility of Expansion.S. Accelerating Innovation in Energy: Insights from Multiple Sectors. **Nordhaus. and Robert Stavins. September 5. Davis. Nick et al. A Renaissance for U. 2010. Working Papers. Climate Policy Options. 2014. Nemet and Daniel M. RFF Weekly Policy Commentary. DC: Resources for the Future. Harvard Business School Working Paper 10-067.Acemoglu. Gregory F.. Richard G. 35: 746–755 Webster. Inducing Innovation for Climate Change Mitigation.S. Readings: Non-Academic Reports *President’s Office of Advisors on Science and Technology.. Innovation and Climate Policy. N. and van Beers.S. Popp. June 30. 2010. Michaels. 61(2)." Prepared by Val R. DC: Resources for the Future. D. Rebecca and Richard G. Jensen. Institutions. and Academic Press ** Henderson. November 2007. Robert N. The Perils of the Learning Model for Modeling Endogenous Technological Change. R. Newell. 21396. 2006. and James Sweeney. 2010. Nuclear Power? Not Anytime Soon. 2013. Jaffe. and Instruments. November 10. An Economic View of the Environment. R. Issue Brief 9 in Assessing U. *Johnstone. 45(1). 2012.” Environmental and Resource Economics. RFF Weekly Policy Commentary. The Energy journal 35(1): 1-13.. “Lessons from the History of Federal R&D policy for an ‘Energy ARPA. 2011.’” Testimony before the Committee on Science. Kammen. Washington.. Popp. Newell. 2015. 2007. Readings: Policy Briefs. Stavins. Both Are Necessary. Richard. Annual Review of Resource Economics 2(1). 2010. pp. W. Energy Research and Development: Declining Investment. The Induced Innovation Hypothesis and Energy-Saving Technological Change. D.G. Journal of Environmental Economics and Management.G. Philippe Aghion. and David Hemous. Lucas. November. But Neither Is Sufficient: Carbon-Pricing and Technology R&D Initiatives in a Meaningful National Climate Policy. Arias. NBER Working Paper No. July.275-298.April 7: Innovation and R&D Policy Readings: Journal Articles. 24 . Arthur van Benthem. February 11.. Energy subsidies. ICF International. 2007. 2007.D. Report to the President on Accelerating the Pace of Change in Energy Technologies through an Integrated Federal Energy Policy. Press. Gillingham. At home and abroad: An empirical analysis of innovation and diffusion in energy technologies. Elena and Marzio Galeotti. *David Mowery.

April 12 – April 26 Final papers are due 5pm Friday May 6. to be scheduled.Student Presentations. 25 .