Publications

2019
Stavins, Robert. Economics of the Environment: Selected Readings, Seventh Edition. Seventh. Cheltenham, UK; Northampton, Mass: Edward Elgar Publishing, Inc. 2019.
[B-12]
Mehling, Michael A., Gilbert E. Metcalf, and Robert N. Stavins. “Linking Heterogeneous Climate Policies (Consistent with the Paris Agreement).Environmental Law 8, no. 4 (2019): 647–698.Abstract
The Paris Agreement to the United Nations Framework Convention on Climate Change has achieved one of two key necessary conditions for ultimate success—a broad base of participation among the countries of the world. But another key necessary condition has yet to be achieved—adequate collective ambition of the individual nationally determined contributions. How can the climate negotiators provide a structure that will include incentives to increase ambition over time? An important part of the answer can be international linkage of regional, national, and sub-national policies, that is, formal recognition of emission reductions undertaken in another jurisdiction for the purpose of meeting a Party’s own mitigation objectives. A central challenge is how to facilitate such linkage in the context of the very great heterogeneity that characterizes climate policies along five dimensions: type of policy instrument, level of government jurisdiction, status of that jurisdiction under the Paris Agreement, nature of the policy instrument’s target, and the nature along several dimensions of each Party’s Nationally Determined Contribution. We consider such heterogeneity among policies, and identify which linkages of various combinations of characteristics are feasible; of these, which are most promising; and what accounting mechanisms would make the operation of respective linkages consistent with the Paris Agreement.
[A-95]
2018
Chan, Gabriel, Robert Stavins, and Zou Ji. “International Climate Change Policy.” Annual Review of Resource Economics 10 (2018): 335–360.Abstract
International cooperation to address the threat of climate change has become more institutionally diverse over the past decade, reflecting multiple scales of governance and the growing inclusion of climate change issues in other policy arenas. Cooperation under the United Nations Framework Convention on Climate Change has continued to evolve from the 1997 Kyoto Protocol to the 2015 Paris Agreement, while other governmental and private sector international fora for cooperation have arisen. As the level of activity in international cooperation on climate change mitigation has increased, so too has the related scholarly literature. In this review, we synthesize the literature on international climate change cooperation and identify key policy implications, as well as those findings most relevant for the research community. Our scope includes critical evaluation of the organization and implementation of agreements and instruments, retrospective analysis of cooperative efforts, and explanations of successes and failures.
chan_stavins_zou_ji_annual_review_article_2018_002.pdf
[A-94]
Schatzki, Todd, and Robert Stavins. “GHG Cap-and-Trade: Implications for Effective and Efficient Climate Policy in Oregon.” Harvard Environmental Economics Program, 2018. dp_92_schatzki-stavins.pdf
Richard, Schmalensee, and Robert Stavins. “Policy Evolution Under the Clean Air Act.” Harvard Environmental Economics Program, 2018.Abstract
The U.S. Clean Air Act, passed in 1970 with strong bipartisan support, was the first environmental law to give the Federal government a serious regulatory role, established the architecture of the U.S. air pollution control system, and became a model for subsequent environmental laws in the United States and globally. We outline the Act’s key provisions, as well as the main changes Congress has made to it over time. We assess the evolution of air pollution control policy under the Clean Air Act, with particular attention to the types of policy instruments used. We provide a generic assessment of the major types of policy instruments, and we trace and assess the historical evolution of EPA’s policy instrument use, with particular focus on the increased use of market-based policy instruments, beginning in the 1970s and culminating in the 1990s. Over the past fifty years, air pollution regulation has gradually become much more complex, and over the past twenty years, policy debates have become increasingly partisan and polarized, to the point that it has become impossible to amend the Act or pass other legislation to address the new threat of climate change.
dp_79_schmalensee-stavins_clean_air_act.pdf
Stavins, R. N.Some Reflections on the Role of Economics in Environmental Policy.” The Environmental Forum 35, no. 6 (2018): 15. column_87_some_reflections_on_the_role_of_economics_in_environmental_policy.pdf
[D-164]
Stavins, R. N.Linkage Will Prove Essential for Ultimate Success of Paris Agreement.” The Environmental Forum 35, no. 5 (2018): 15.
[D-163]
Stavins, Robert. “Should California Develop the State's Large Petroleum Resources?The Environmental Forum 35, no. 4 (2018): 15.
[D-162]
Stavins, Robert. “Film Review: Rudi Goldman: Burgundy: People with a Passion for Wine.” Journal of Wine Economics 13(2018):105-108. [A-93]” (2018).
[A-93]
Stavins, R. N., Michael A. Mehling, and Gilbert E. Metcalf. “Linking Climate Policies to Advance Global Mitigation.” Science 359 (2018): 997–998. mehling-metcalf-stavins_linking_climate_policies_to_advance_global_mitigation.pdf
[A-92]
Stavins, Robert. “World’s Largest Carbon Market is Scheduled for 2020 Launch in China.” The Environmental Forum Volume 35, no. 2 (2018): 15. 021218_column_83-worlds_largest_carbon_market_2020_china.pdf
[D-160]
2017
Stavins, R. N., Robin Cross, and Andrew J. Plantinga. “Terroir in the New World Hedonic Estimation of Vineyard Sale Prices in California.” Journal of Wine Economics 12, no. 3 (2017): 282–301. Publisher's VersionAbstract
In the Old-World vineyards of Europe, a key concept that plays an important role in the production and appreciation of wines is terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We examine whether terroir matters in the New-World wines produced in California’s Napa and Sonoma Counties by conducting a hedonic price analysis of vineyard sales over the period 1991 to 2007 to determine the relative effects on vineyard sales prices of designated appellations versus biophysical site attributes commonly associated with terroir, such as slope, aspect, elevation, and climate. Because vineyards that are sold are not necessarily representative of the universe of vineyards, we employ Heckman’s two-stage econometric approach to control for possible sample-selection bias. We find that intrinsic site attributes and designated appellations influence vineyard prices, although our results are stronger and more consistent with regard to the influence of appellations. This finding indicates that terroir matters economically, even if the designated appellations have relatively less connection in reality with terroir. (JEL Classifications: C2, Q11)
122117_terroir-in-the-new-world-hedonic-estimation-of-vineyard-sale-prices-in-california.pdf
[A-91]
Gerarden, Todd D., R.G. Newell, and R. Stavins. “Assessing the Energy-Efficiency Gap.” Journal of Economic Literature 55, no. 4 (2017): 1486–1525.Abstract
Energy-efficient technologies offer considerable promise for reducing the financial costs and environmental damages associated with energy use, but it has long been observed that these technologies may not be adopted by individuals and firms to the degree that might be justified, even on a purely financial basis. We survey the relevant literature on this "energy-efficiency gap" by presenting two complementary frameworks. First, we divide potential explanations for the energy-efficiency gap into three categories: market failures, behavioral explanations, and model and measurement errors. Second, we organize previous research in terms of the fundamental elements of cost-minimizing energy-efficiency decisions. This provides a decomposition that organizes thinking around four questions. First, are product offerings and pricing economically efficient? Second, are energy operating costs inefficiently priced and/or understood? Third, are product choices cost minimizing in present value terms? Fourth, do other costs inhibit more energy-efficient decisions? We synthesize academic research on these questions, with an emphasis on recent empirical findings, and offer suggestions for future research.
121117_assessing_the_energy-efficiency_gap.pdf
[A-90]
Schmalensee, Richard, and Robert N. Stavins. “The Design of Environmental Markets: What Have We Learned From Experience With Cap and Trade?Oxford Review of Economic Policy 33, no. 4 (2017): 572-588.Abstract
This article reviews the design of environmental markets for pollution control over the past 30 years, and identifies key market-design lessons for future applications. The focus is on a subset of the cap-and-trade systems that have been implemented, planned, or proposed around the world. Three criteria led us to the selection of systems for review. First, among the broader class of tradable permit systems, our focus is exclusively on cap-and-trade mechanisms, thereby excluding emission-reduction-credit or offset programmes. Second, among cap-and-trade mechanisms, we examine only those that target pollution abatement, and so we do not include applications to natural resource management, such as individual transferable quota systems used to regulate fisheries. Third, we focus on the most prominent applications—those that are particularly important environmentally, economically, or both.
The Design of Environmental Markets: What Have We Learned From Experience With Cap and Trade?
[A-89]
Stavins, Robert N.What Have We Learned from 30 Years of Cap-and-Trade Programs?The Environmental Forum 34, no. 6 (2017): 15. What Have We Learned from 30 Years of Cap-and-Trade Programs?
D-158
Mehling, Michael A., Gilbert E. Metcalf, and Robert N. Stavins. “Linking Heterogeneous Climate Policies (Consistent with the Paris Agreement).” Cambridge, Massachusetts, USA: Harvard Project on Climate Agreements, 2017.Abstract
The Paris Agreement has achieved one of two key necessary conditions for ultimate success – a broad base of participation among the countries of the world. But another key necessary condition has yet to be achieved – adequate collective ambition of the individual nationally determined contributions. How can the climate negotiators provide a structure that will include incentives to increase ambition over time? An important part of the answer can be international linkage of regional, national, and subnational policies, that is, formal recognition of emission reductions undertaken in another jurisdiction for the purpose of meeting a Party’s own mitigation objectives. A central challenge is how to facilitate such linkage in the context of the very great heterogeneity that characterizes climate policies along five dimensions – type of policy instrument; level of government jurisdiction; status of that jurisdiction under the Paris Agreement; nature of the policy instrument’s target; and the nature along several dimensions of each Party’s Nationally Determined Contribution. We consider such heterogeneity among policies, and identify which linkages of various combinations of characteristics are feasible; of these, which are most promising; and what accounting mechanisms would make the operation of respective linkages consistent with the Paris Agreement.
MMS_linking_heterogeneous.pdf
Stavins, Robert N.Authority, Credibility, Influence: What U.S. Loses in Paris Pullout.” The Environmental Forum 34, no. 5 (2017): 17. column_80.pdf
D-157
Stavins, Robert N.The Economics (and Politics) of Trump's Paris Withdrawal.” PBS NewsHour (2017). Publisher's VersionAbstract
The announcement by President Trump that he will withdraw the United States from the Paris climate agreement was based neither on real science nor sound economics.
D-156
Stavins, Robert N.Goodbye Paris, Hello Nicaragua: Why Trump’s Withdrawl From The Climate Accord Is Bad For America.” WGBH News (2017). Publisher's VersionAbstract
President Trump’s decision to withdraw the United States from the Paris Climate Agreement was both confused and misguided, and his justifications were, for the most part, false.
D-153
Stavins, Robert N.Will the Trump Administration Realize the Many Benefits of Paris?The Environmental Forum 34, no. 4 (2017): 17. column_79.pdf
D-155

Pages