Anticipated Impacts of 2020 U.S. Election on Climate Policy

There is little time left until the U.S. presidential and congressional elections on November 3rd, an election which people on all sides of the many issues, whether they’re Republicans or Democrats, characterize as an exceptionally important election.  Among the important policy areas that will be affected by the election is the area on which I focus in this blog, namely environmental and energy policy, including of course, climate change policy.

As readers of this blog know, my monthly podcast – “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program – provides a venue for me to chat about policy and practice with knowledgeable people working at the interface of economics, energy, and the environment, whether from academia, NGOs, business, or government.  With the election coming up, it was clear to me that it would be a real service to our listeners, both in the United States and around the world, to talk with knowledgeable people about the election’s implications, both before the election and afterward.  And I realized that for this purpose, rather than talking with someone from academia, government, NGOs, or industry, I should talk with people who make it their business to examine key climate policy questions in a real-world political context on a daily basis, indeed often on an hourly basis.

I’m referring, of course, to practicing journalists.  So, I went to two people who are leaders in the realm of environmental reporting in a meaningful political context, two people whom I greatly respect and with whom I’ve had the pleasure of working – from my perch in academia – for many years.  Specifically, my post-election discussion, which will be in a few weeks, will be with Coral Davenport of the New York Times.  And for our before-election discussion, I’m delighted to say that I was joined by Lisa Friedman, reporter on the climate desk, also at the New York Times.  You can hear our complete discussion here.

Lisa Friedman, who joined the New York Times in 2017, after spending 12 years at Climatewire and E&E News, expressed  her delight with the attention that climate change policy is receiving in this election year, saying that it is “undeniably bigger and more substantive than it has ever been before,” noting, for example, the seven hours of climate change Town Hall discussions hosted by CNN.

“In every election that I have covered, both presidential and midterms, since I’ve been focused on climate change for about 10 or 12 years now, we always ask, ‘is this the election when climate change matters?’ And it does seem that this is the election when climate change matters.”

Friedman points out that the news coverage during this election cycle has demonstrated that the two presidential candidates represent very different views on climate policy.

“The fact that one candidate who calls climate change a hoax, and has been openly antagonistic to climate science, and has moved to roll back climate regulations, is pitted against a candidate who calls climate change an existential threat, makes this a more salient issue to cover,” she says.

If President Trump is re-elected, Friedman explains, Americans can expect more of the same policy positions that he espoused during his first term.

“President Trump has rolled back virtually every regulation that had existed to draw down emissions from power plants, from automobile tailpipe emissions, from the oil and gas sector,” she says. “One of the things that this administration has done that hasn’t gotten as much attention is they have worked to not just roll back regulations, but to roll back the ability to create new regulations. And I think that is something that we’ll see a lot more of.”

Friedman notes that if Vice-President Biden is elected on November 3rd, he will push the country toward more aggressive climate policies, although Congressional support would not be guaranteed.

“Vice President Biden has pledged two trillion [dollars] over four years to boost clean energy, electric automobiles, energy efficient buildings. He has called for eliminating fossil fuel emissions from the power sector by 2035,” she says. “That is going to be a difficult sell to get through the Senate in any configuration.”

Friedman also predicts that a President-elect Biden will likely announce very early that the United States will rejoin the Paris Agreement, from which Trump withdrew U.S. support early in his administration.

“I think you can expect some messaging very early on to the international community to remind them that throughout his campaign, he has pledged at getting back into the Paris Agreement will be a day one promise,” she says. “And then comes the question of thinking … about what US reentry into the Paris Agreement looks like.  Because…getting back into Paris is the easy part.”

The more challenging part, of course, will be specifying a new Nationally Determined Contribution within the Paris Agreement framework.

All of this and more is found in the latest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.” Listen to this latest discussion here.  You can find a complete transcript of our conversation at the website of the Harvard Environmental Economics Program.

Friedman’s interview is the 16th episode in the Environmental Insights series, with future episodes scheduled to drop each month. The next episode will feature another New York Times climate desk reporter, Coral Davenport, who will provide a post-election analysis.

My conversation with Lisa Friedman is the sixteenth episode in the Environmental Insights series.  Previous episodes have featured conversations with:

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunes, Pocket Casts, Spotify, and Stitcher.

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Greening an Economic Stimulus: Lessons from Experience

As the U.S. Congress and the Trump administration continue to discuss the possibility of a second major economic relief bill, many observers in this country and other countries maintain that any eventual economic recovery package ought to include green elements that can help move the country along a path toward a more carbon-friendly society.  That is the topic of the most recent (October 19th) webinar in our series, Conversations on Climate Change and Energy Policy, sponsored by the Harvard Project on Climate Agreements (HPCA), in which I have the pleasure of hosting my colleague, Joseph Aldy, Professor of the Practice of Public Policy at the Harvard Kennedy School

As you know, in this webinar series we feature leading authorities on climate change policy, whether from academia, the private sector, NGOs, or government.  A video recording and transcript of this latest webinar are available here.

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Joe Aldy has had significant experience in more than one of those realms.  In addition to being a professor at Harvard, Joe has worked in government in a variety of positions, most recently as Special Assistant to the President for Energy and Environment in the Obama administration.  On a personal note, I’m pleased to say that we have been colleagues for many years, going back to when Joe was a Ph.D. student in economics at Harvard.  Subsequent to that, when he was a Fellow at Resources for the Future in Washington, D.C., he and I were the co-founders of the Harvard Project on Climate Agreements.  Over the years, we’ve co-authored quite a few books and articles, including one that will be published later this year in Climate Change Economics.

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In his webinar presentation and the subsequent discussion, Joe shares his perspectives on lessons that can be learned from the 2009 American Recovery and Reinvestment Act, which policymakers can apply to future economic stimulus negotiations.

“There is clearly a growing interest in thinking about ways in which we can both tackle the COVID-19 recession, establish an economic recovery, and rebuild the economy, and do so in a way that addresses climate change,” Aldy remarks. To do so, he continues, a plan must be timely, targeted, and in some ways temporary, so as not to outlast its need and effectiveness. “At the end of the day you need something that is politically viable. You need something that is a bill that can then become a law. All of this should play into how we think about the design, crafting, and subsequent implementation of a recovery program.”

Aldy highlights the successes of the 2009 Recovery Act, pointing to the 900,000 jobs it created through green energy investments, and the subsequent growth in renewable power, particularly solar and wind.

“I think what’s important is not just to think about what was the impact of having subsidies for two or three years during the Recovery Act period for wind and solar, but recognizing that pushing out those technologies in those early years helped drive down the cost over time to enable even more significant expansion in our capacity of wind and solar in the past half dozen years,” he said.

But Joe also points out the shortcomings of the Recovery Act, arguing that some elements, like the “Cash for Appliances” subsidy program, were poorly targeted, rewarding those who would have purchased the items even without government assistance. He also cites the fact that some green projects, like carbon capture and storage and high-speed rail, were nixed or downscaled when non-federal partners withdrew from their obligations and the federal government chose not to move forward on its own.

Targeting programs so that they reach underserved and lower-income populations is important, Aldy notes, but so is the simplicity of design.

“Simplicity is really important, although I recognize there is a tension between wanting to be very thoughtful and how you target. Sometimes you might need to be a little less simple to be more effective in targeting, but you want to try to strike the right balance so that you don’t make the program so complicated that a lot of potential participants in the program shy away from its complexity, or delays the rollout of the program.” 

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When we are halfway through the one-hour session, I pose some questions submitted by members of the virtual audience on a wide range of issues.  One question seeks Joe’s insights about how a Biden Administration, if elected in November, would differ from a second-term Trump Administration in its approach to advancing a green economic stimulus package.

“If Trump were to be re-elected, I don’t think there will be much that would be meaningful that would be focused on green energy in a recovery package,” he said. “For a President-elect Biden, I think that there could be considerable investment here. He has talked about…a significant ramping up of spending on the order of $2 trillion over four years, and a large fraction, about 40-percent, would try to target underserved communities.” 

Regardless of who is elected, Aldy says, policymakers need to be cognizant of the politics of green energy investment, and design their programs accordingly to appeal to elected officials in red as well as blue states.

“They may not talk much about climate change, but if it means creating demand for new construction jobs in their district or in their state, that might be something that they find attractive,” he argues. “At the end of the day, there’s a bit of the politics and the sausage making, if you will, in how you craft all the different kinds of components into a piece of legislation that effective leaders, people who know how to pass bills in Congress, know how to do that so they can then count the votes and get their bills passed in their chamber.”

All of this and more can be seen and heard at this website.  I hope you will check it out.

Previous webinars in this series – Conversations on Climate Change and Energy Policy – have featured Meghan O’Sullivan’s thoughts on Geopolitics and Upheaval in Oil Markets, Jake Werksman’s assessment of the European Union’s Green New Deal, Rachel Kyte’s examination of “Using the Pandemic Recovery to Spur the Clean Transition,” and Joseph Stiglitz’s reflections on “Carbon Pricing, the COVID-19 Pandemic, and Green Economic Recovery

The next HPCA Conversation on Climate Change and Energy Policy is scheduled for November 12th with guest Jason Bordoff, Professor of Professional Practice in International and Public Affairs at Columbia University.  Please register in advance for that event on the HPCA website.

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Guarded Optimism about the Paris Climate Agreement

My monthly podcast – “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program – provides a venue for me to chat about policy and practice with interesting people who are working at the interface of economics, energy, and the environment, whether from academia, NGOs, business, or government.  My latest guest is a “rock star” on the international climate policy circuit – David Victor

Perhaps the ultimate professional compliment I can give someone after having read something they’ve written is to think, “I wish I’d written that.”  There are two people about whom I’ve recently thought that, and neither is an economist (as am I).  One is a lawyer, Jason Bordoff, on the faculty at Columbia University (he will be featured in a blog post in the near future); and the other, a political scientist, is David Victor, professor of international relations at the School of Global Policy and Strategy at the University of California, San Diego, where he is director of the Laboratory on International Law and Regulation

In addition, David is Co-Chair of the Brookings Institution Initiative on Energy and Climate, and he’s served as a Coordinating Lead Author of the Intergovernmental Panel on Climate Change, where he and I spent many hours together in various parts of the world – some of it enjoyable, some not.  Much of David’s research has been at the intersection of climate change science and policy.

You can listen to my conversation with David Victor here.

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David is delightfully outspoken on subjects about which he has considerable expertise, including the international dimensions of climate change policy.  In our conversation, he voices his concern about uncertainty surrounding climate policy at a time when many countries are directing or preparing to direct their resources into large-scale economic stimulus programs to help soften the economic blow of the coronavirus pandemic.  David notes that many questions remain at this time about public confidence in federal leadership and in the capacity for governments to act effectively.

“What I really worry about is that there’s been a huge test of government and that governments have varied enormously in their competence. And in particular, I’m deeply worried about the federal government in the United States,” he says. “And the contrast this time with the 2008-2009 financial crisis is really striking because back in 2008-2009, depending on how you count, up to 15% of the stimulus money went into low carbon trajectories. And a lot of it was spent well, and this time outside of Europe, we’re not seeing that. So that to me is the really big lesson emerging out of the pandemic that’s going to affect the future of energy and climate.”

He notes that “… the world is really looking to Europe more than the United States right now for guidance and a vision of how you would do large green infrastructure spending effectively.”  In particular, Victor points to the interesting work on climate and energy taking place in Norway.

“The Norwegians have shown, even for a small population of highly committed people, that you can make big bets on new technologies. And where those bets are successful, that in effect, you push the frontier and you steer the whole industry,” he said. “And so, Norway is a small country economically and in terms of population, but is engaged in leadership in a way that leadership might create followership.”

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It is fair to say that David Victor was not a fan of the Kyoto Protocol and its particular policy architecture, but he expresses guarded optimism that while the Paris Agreement, which has been ratified by 125 parties since its approval in 2016, has some flaws due to its structure, it is a first step toward an effective international effort to combat climate change.

“I expect that Paris is valuable because it’s there; it’s a city on the hill. It’s got goals that a lot of people are talking about. It’s got legitimacy, and that’s an enormous contribution that we’ve not had to date,” he remarks. “But then we should expect almost all the serious work’s going to happen in clubs of countries working outside Paris in ways that are consistent with Paris. And I think most of the diplomats are overly focused on Paris, and under focused on this – the real engines of progress.”

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All of this and more is found in the latest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.” Listen to this latest discussion here.  You can find a complete transcript of our conversation at the website of the Harvard Environmental Economics Program.

My conversation with David Victor is the fifteenth episode in the Environmental Insights series.  Previous episodes have featured conversations with:

“Environmental Insights” is hosted on SoundCloud, and is also available on iTunes, Pocket Casts, Spotify, and Stitcher.

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