Environmental and Energy Economics

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An employee turns a valve at a gas compressor station in the village of Boyarka, outside Kiev, April 22, 2015. Russian natural gas producer Gazprom said on Wednesday Kiev owed it $174.2 million for gas supplied to eastern Ukraine since the beginning of the year.  Reuters

While Russia depends on its gas exports to Europe, the frantic efforts to build alternative gas routes to Europe have little to do with economics or energy security.

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Image Credit: shutterstock

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

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The current bank on US crude oil exports, enacted in part as a response to the 1973 oil embargo, is based on outdated economic considerations.

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Utility companies across the country are transitioning away from coal power and embracing greater use of renewable sources of energy and natural gas. Michigan is at the intersection of this change.

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Senator Sheldon Whitehouse addresses the media. Reuters

Senators Sheldon Whitehouse (D-RI) and Brian Schatz (D-HI) present their proposal for a carbon tax, followed by debate on its merits

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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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