Environmental and Energy Economics

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Senator Sheldon Whitehouse, D-RI, presents his proposal for a carbon tax, followed by debate on its merits.

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Working on an economic story today? Here’s the latest from AEI experts on today’s economic stories.

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It’s been tempting to think the shale boom is over, that a fall in the rig count and a small dip in US crude production signify that the high-water mark of US shale oil has come and gone. But, as the Saudis are finding out, we are just in the early innings of a new revolution.

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US energy policy requires that motor fuel is blended with large quantities of biofuels, produced from crops like corn and soybeans. This disrupts domestic production, prices, and trade for major crops.

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Used appropriately, genetic engineering is a fantastic tool—to create new life-saving drugs and encourage cutting edge ecologically based farming technique.

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Euro coins are seen in front of displayed logo of Gazprom in this picture illustration taken in Zenica, April 21, 2015. Reuters

The EU needs to do much more than just punish Gazprom. It must create a genuinely competitive marketplace for energy, providing the European economy with cheap, secure and, ideally, clean energy.

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Dianna Ingram/Bergman Group

It is not enough to assert that the carbon tax — combined with a reduction in a purportedly inefficient (capital) tax and/or the GHG regulatory framework — would yield an increase in economic growth. The models behind the prediction are essentially tautological: If we substitute an efficient tax for an inefficient one, we will observe stronger growth.

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Panelists discuss the role carbon taxes can play in broader fiscal reform and in the run-up to the December 2015 United Nations climate conference.

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This Earth Day, AEI scholars are available to discuss the politics and economics of US environmental policy.

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The tragic reality of Earth Day 2015: Expensive power equals less life.

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When the public cares deeply about something, as they do about the environment, they often give answers that are designed to keep the pressure on legislators. That doesn’t mean they are paying close attention to debates in Washington.

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How did ecologist Paul Ehrlich’s predictions hold up?

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