Todays slide theme: Animals from Australia Youll see why'

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Todays slide theme Animals from Australia
(Youll see why.)
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Announcements

• Homework 3.
• Due Wednesday at 10 a.m.
• Work together
• Homework 4 will be handed out Wed.
• Memo 2 assignment now online. Due April 29.
• This weeks discussion section readings are now
  posted. A Tale of Two Fisheries.
• Let your TA know if you are missing section this
  week.

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• Pick up exams and memos. Do it. This means you.
• No class next Monday (April 13). (Were ahead.)
• This means it is more important to come to the
  rest of the classes.
• Todays class
• Federal conservation programs (finish)
• Carbon offsets
• Energy policy (CAFE mileage standards)

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Conservation policies

• Two kinds of policies
• Land Retirement
• Conservation Reserve Program, Wetlands RP
• Working Lands
• Environmental Quality Incentives Program (EQIP)
• Wildlife Habitat Incentives Program (WHIP)
• Many others

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Working Lands Programs

• The Environmental Quality Incentives Program
  (EQIP) provides technical assistance, cost
  sharing, and incentive payments to assist
  livestock and crop producers with conservation
  and environmental improvements. An additional
  50 million (to be made available as soon as
  practical) is allocated to water conservation
  activities in the Klamath Basin.
• The Wildlife Habitat Incentives Program provides
  cost sharing to landowners and producers to
  develop and improve wildlife habitat.

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• The Conservation Security Program will provide
  payments to producers for maintaining or adopting
  a wide range of structural and/or land management
  practices that address a variety of local and/or
  national resource concerns.
• (Does not need to be cropland. Can be existing
  practices.)

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Working Lands Programs

• Voluntary enrollment
• Payment for activities such as
• Fences
• Build terraces or other erosion-control
  structures.
• Water structures, water supply
• Manure management
• Improve wildlife habitat. (Landowner may propose
  project.)
• Riparian buffers.
• Key feature Land not taken out of production.

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Working Lands Programs

• Similar to CRP
• Incentive payment and cost-sharing
• One year or multi-year contracts
• Payments
• Competitive enrollment or
• Offered payment
• EQIP Focus on water quality (e.g., reduce
  nitrogen or phosphorus runoff)
• WHIP Wildlife habitat

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Federal Conservation Programs

• Evaluation of these policies?
• Are the right activities being targeted?
• Can we make the programs output-based? Current
  programs are activity-based.
• Would these activities have taken place anyway?
• These concerns apply to all policies that use
  subsidies.

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Carbon offsets

• http//www.chicagoclimatex.com/
• Go to offsets
• P.S. Reminder Pick up your exams and memos.
  Dont forget.

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Energy Policy

• Traditionally, not a single-issue law
• What is the problem?
• Pollution
• Prices (current or future)
• Level
• Volatility
• Imports
• Money goes overseas (this can be disadvantageous
  even if money goes to friendly governments)
• Security Enriches less-than-friendly
  governments. Possibility of oil cut-off
• Greenhouse gases

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Energy Policy

• Energy Policy Act of 2005.
• Energy Independence and Security Act of 2007.
• American Clean Energy and Security Act of 2009
  (ACES) (Currently proposed)
• Previous major bill was
• Energy Policy and Conservation Act of 1975
• (Established Corporate Average Fuel Economy
  (CAFE) standards.)

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CAFE standards

• Mileage standard for new cars on a company-wide
  basis.
• Different standards for cars and light trucks.
• Separate averages for domestic and import fleets
  (cars).
• Can be banked for 3 years.
• Penalty 5.50 per 1/10th mpg per car
• Energy Act of 2007 Administrator may allow
  trading across companies.

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Energy Policy and Conservation Act

• Many mistakes policy provisions that led to
  problems
• CAFE standards for passenger cars

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• Separate standards for light trucks
• History
• Chart
• Did CAFE standards lead to extra deaths in auto
  accidents?

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Cars and light trucks
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• Recent actions
• Size-adjusted standards were scheduled to begin
  in 2008
• These were struck down and will probably not go
  forward.
• Energy Independence and Security Act
• Federal mileage standards to increase to 35 mpg
  by 2020.
• This time, Congress left it up to NHTSA.

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• New cars face three separate standards
• Emissions
• Safety
• Mileage
• Larger vehicles face separate standards.
• These are completely separate! Dont get them
  mixed up!

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CAFE standards

• CAFE is an example of __________________ (kind of
  policy).
• For this reason, CAFE is a poorly designed
  policy.
• If we tighten the CAFE standards then.
• An additional problem is that CAFE does not focus
  on the issue we really care about! That problem
  is
• GASOLINE CONSUMPTION
• Does not affect of cars.
• Does not how cars are driven.

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The safety controversy

• Did CAFE standards lead to extra deaths in auto
  accidents?
• Consider 3 types of accidents
• Light car / Light car
• Light car / Heavy car
• Heavy car / Heavy car
• Which is worst, (a), (b), or (c)?
• Which is better, (a) or (c)?

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• Further considerations
• Accident frequencies are not the same.
• Other accidents (bicycle pedestrian)
• SUVs have greater likelihood of accidents.
• Vehicle?
• Driver?
• How someone drives?

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• Solution (sort of) Size-adjusted standards
• If you make the car smaller in weight or wheel
  base, you have to meet a higher mileage standard.
• This was struck down by the courts and will
  probably not go through.

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CAFE and safety, cont.

• Footprint Wheel base multiplied by track width
• Do new CAFE standards require an Environmental
  Impact Statement? (This is a bit of a trick
  question.)

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CAFE lessons

• CAFE is flexible (not command-and-control) on how
  we improve new car mileage.
• But not flexible on how we reduce gasoline
  consumption!
• Analogous to a standard on sulfur content of
  coal.
• New Source Performance Standard
• Multiple problems require multiple solutions and
  are harder to regulate. Lots of possible
  unintended consequences