Sustainable Policies (2)

Question 1

Climate-energy policy

Answer 1

Question 2

Subsides (includes offsets)

Answer 2

Financial rewards for adopting a particular technology, fuel or material. Includes grants, tax credits, rebates, gifts.

Question 3

Subsides (Examples)

Answer 3

Electric vehicles subsidy
Renewables power production incentive
Insulation and home energy efficiency retofit subsidies
Carbon capture and storage subsidies

Question 4

Subsidies major challenge

Answer 4

Subsidies may be captured by firms and households for doinf what they were going to do anyway (sometimes referred to as “free-riders”; economist call this “adverse selection”)

Question 5

Free ridership estimates

Answer 5

Question 6

Definition of offset

Answer 6

a s”subsidy”, usually form one private entuty to another, to help fund an action that reduces emissions from what they otherwise would be (buiness as usual)

Question 7

Voluntary offset (Definition)

Answer 7

individual and corporations can voluntarily acquier offsets in order to reduce their net emissions

Question 8

Regulate entity offset (Definition)

Answer 8

A cap and tradesystem could allow a regulated entity to meet some or all of ots emissions reductions by acquiering offsets

Question 9

Crabon offsets : another fomr of subisdy

Answer 9

Goverments requier, and offsetter companies promises, that offsets are “ verified to be additional and permanent”. But proving this is dificult

Question 10

Options for crabon offsets

Answer 10

1-Improving energy efficiency so that less fossil fuels are combusted and less GHG emitted

2-Changing agricultural prcatices, such as tillage, manure handiling and livestock feed

3-PLanting or perserving trees to oncrese carbon in biomass on the earth surface “ Nature based solutions”.

4-Capture or prevent a GHG emission (land fill gases, pipeline methane leaks, carbon capture and storage)

Question 11

Evaluating sustainability public policy options: climate-energy focus(6)

Answer 11

-Command and control regulations on buildings, technologies, energy forms

-Emission pricing- carbon taxes, cap-and -trade

-Government direct action with assets or emplyees it manages inudce voluntary action by forms and households

-Subsides (including offsets)

-Flexible regulations- tradable quotas for desired techs, energy

-Community GHG-energy polices- land-use planning, development premitting, infrastructure

Question 12

Carbon pricing terminology

Answer 12

-c-tax / cap&trade : are “explicit emission pricing
-Flex-regs could be called “implicit” emissions pricing

Question 13

Zero-Emissison Vehicles (ZEV)

Answer 13

-Vehicle sellers must meet future min % sales of ZEV or pay large fine per vehicle sold in excess of target
-Can trade credits among themselves to achieve aggregate target
-Will cross-subsidize between vehicles types to achieve target

Question 14

Community Energy Management (CEM) (Definition)

Answer 14

Integration of urban planning with energy system planning and management to reduce energy use and waste

Question 15

Difference between CEM and Energy-climate policy

Answer 15

Energy climate policy often focuses in tech-fuel choices of firms and households.

CEM (Comunity Energy Management) focuses on choices of municipal gov’ts, utilities and corporations for infrastructure, buildings, urban form.

Question 16

Spatial scale and time-frame

Answer 16

Spatial scale is large (whole cities) and the time-frame for change is long (decades).

Question 17

Community GHG-energy management :Key elements (Policy objective)

Answer 17

Policy objective: Design cities that are efficient, compact and environmentally friendly, reducing greenhouse gases and energy used.

(Compact cities, improve economic for public transit and active mobility, lower infrastructure cost, reduce energy used for heating spaces, switch to cleaner fuels)

Question 18

Community GHG-energy management :Key elements (Policy tools)

Answer 18

Policy tools

-Proper taxes
-Infrastructure investments
-Road pricing
-Building codes
-Utility efficiency rules
-parking restrictinos and feest
-Retrofit subsidies
-Local heat and power

Question 19

Flex-Regs (Definition)

Answer 19

Performance-based regulations that require all firms in a sector to meet a certain environmental or operational standard.

Question 20

Flex Regs (Firms Options)

Answer 20

-Comply with the regulation directly.
-Pay others (offset) to achieve the same enviromental goals, creating a market-oriented regulation

Question 21

Flex Regs (Key idea)

Answer 21

It provides flexibility in how compliance is achieved, allowing forms to either innovate internally or leverage the efforts of others to meet regulatory goals.

Question 22

Why are Flex-Regs Cost Effective

Answer 22

Flex-Regs are design to mimic the benefits of emission pricing systems like : Carbon taxes and Cap-and-trade

The flexibility allows firms to choose the most cost-effective way to comply with regulations

Question 23

Flex-Regs Cost Effective (Key Features)

Answer 23

-No technology favoritism (Exp. renewables vs improved efficiency).
The market decided on the best approach.

-Trading among participants: Firms can trade compliance credits or allowances, lowering overall cost by allowing firms with cheaper reduction options to do more.

Question 24

Objective of Low Carbon Fuel Standards (LCFS)

Answer 24

Reduce the full-cycle carbon intensity of fuels used in transportation

Question 25

How LCFS (Low Crabon Fuel Standard Works

Answer 25

-Weighted Average Decline
-Flexibility for Compliance
-Eligible Fuels

Question 26

Weighted Average Decline

Answer 26

Regulation mandates that the weighted average carbon intensity of fuels sold in a region must decrease over time.

Question 27

Flexibility for Compliance(Sellers of fuels must either:)

Answer 27

-Meet the carbon intensity targets by blending or selling low-carbon fuels(Exp. biofuels, electricity, hydrogen, natural gas)
-Buy credits from other suppliers who exceed their targets, creating a trading mechanism
-

Question 28

Eligible Fuels

Answer 28

Includes cleaner alternatives such as electricity (Hydrogen, naturals gas and biofuels)

Question 29

Subsidy for Low-Emission Energy

Answer 29

-Sellers of traditional fuels (gasoline and diesel) are required to raise prices.

-The increased revenue is udes to subsidize providers of low-crabon fuels by purchasing credits (supports transition of clean energy sources)

Question 30

What are the Mechanism of Flex-Regs in LCFS?

Answer 30

Market-Oriented: It allows trading of credits, giving participants flexibility to either improve their fuel mix or financially support others doing so.

Incentive-Based: Encourage innovation and adoption of low-carbon technologies without dictating specific technologies

Question 31

Two flex regs

Answer 31

-Meeting Carbon Intensity Target
-Purchasing Credits

Question 32

Compliance (Definition)

Answer 32

Act of following rules, regulations, laws or policies set by government, organizations or authorities. “playing by the rules”

Question 33

Allowances (Definition)

Answer 33

Allowances are permits issued by regulators’ authority that grants entities the right to perform specific activities, such as emitting a set amount of greenhouse gases or extracting resources.

Question 34

Rebates (definition)

Answer 34

Rebates are partial refunds or reductions in the amount paid for a product or service, offered as an incentive to encourage purchase or action