This Week at RFF: On Wednesday, RFF’s Center for Climate and Electricity Policy is hosting “The Role of a Carbon Tax in Tax Reform and Deficit Reduction.” On Thursday, RFF’s Center for Energy Economics and Policy is hosting “Findings from RFF’s Initiative: Managing the Risks of Shale Gas Development.” Register online to attend the events in person or watch the live webcasts at www.rff.org/live.
Energy Efficiency Policies
In the coming weeks, President Obama will be releasing his plans to combat climate change, according to White House energy and environment adviser Heather Zichal, who said the plans will likely focus on “improving the energy efficiency of appliances,” among other policies.
“Improving the efficiency of residential and commercial buildings should be high on the list [of potential energy efficiency policies] as these sectors account for over 40 percent of current energy use,” writes RFF Research Director Margaret Walls. Her research comparing heating, cooling, and water heating equipment subsidies, low-interest loans, and standards suggests key differences among these policy approaches.
- Subsidies can encourage consumers to purchase efficient equipment, reducing energy use and emissions, but they are relatively high cost;
- Loans are cost-effective but have limited impact; and
- Standards lead consumers to purchase equipment that just meets the standard—in contrast to subsidies, which can encourage the purchase of very high efficiency equipment—and they may encourage consumers to hold on to older equipment longer.
Climate Adaptation
Discussions about adapting to climate change seem to be on the rise. While mayors around the country have been developing specific adaption plans for their cities, the federal government has been working to determine its role.
In Reforming Institutions and Managing Extremes: US Policy Approaches for Adapting to a Changing Climate, a team of more than 20 RFF researchers and colleagues present adaptation policy options across a wide array of topics. They note that the most effective policy recommendations will: “provide specific guidance for federal rulemaking; create connections and synergy with other policy areas; address inefficiencies in current federal legislative and regulatory policy; supply information and data to enable policymakers to better understand risk and uncertainty; embed flexibility and responsiveness into management structures; and address equity and social justice concerns.”
