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The report argues that Michigan can affordably achieve a 32.5 percent renewable electricity standard by 2030, which would drive $9.5 billion in investment and reduce CO2 emissions by 65.4 million tons with minimal impact on retail electricity prices.

The Clean Air Task Force (CATF) proposes that the EPA set specific emission rate standards for fossil-fueled utility boilers and natural gas combustion turbines to reduce CO2 emissions. This strategy aims to leverage existing natural-gas capacity to displace coal generation, resulting in significant carbon and pollutant reductions with minimal impact on retail electric rates.

The Clean Air Task Force (CATF) recommends that the EPA establish specific emission rate standards for existing fossil fuel-fired utility boilers (1,450 lbs/MWh) and natural gas combustion turbines (1,100 lbs/MWh). The proposal centers on a 'model' interstate emission credit trading rule that allows states flexibility in compliance, including the use of state-specific emission budgets. Analysis by The NorthBridge Group indicates this approach could reduce electric sector carbon dioxide emissions by 27 percent from 2005 levels by 2020, resulting in a total reduction of 636 million metric tons. The report argues that nearly 70 percent of these reductions would come from optimizing fossil dispatch. Beyond climate benefits, the proposal is estimated to avoid over 2,000 premature deaths annually due to reductions in sulfur dioxide and nitrogen oxides. The total monetized health and climate benefits are estimated at $34 billion in 2020, significantly outweighing the $9.4 billion compliance cost.

The research argues that existing assessments of the Keystone XL pipeline overlook the 'price effect,' where increased oil supply lowers global prices and induces higher consumption. Using a supply-and-demand model, the authors find that if the pipeline enables production that would not otherwise reach the market, it could increase global GHG emissions by up to 93 million tCO2e per year by 2020. This impact is significantly higher than the emissions resulting solely from the higher carbon intensity of oil sands compared to other crudes.

The document discusses the shift toward regulatory-based climate policies in both Canada and the U.S., emphasizing the need for 'equivalency' in measuring carbon reductions across different provincial and state systems. It analyzes the economic impact of proposed Canadian oil and gas regulations, noting that a 40/40 target (40% reduction with a $40 price ceiling) would cost significantly more than a 20/20 target. Finally, it suggests Canada is unlikely to meet its 17% emissions reduction target for 2020 due to delayed oil and gas regulations and increasing energy sector emissions.

The document asserts that CCS is the only available technology allowing coal and gas power generation at near-zero emissions and is a 'Best System of Emission Reduction' under the Clean Air Act. It highlights the flexibility of the EPA's proposed rules, such as an emission limit of 1100 lbs/MWh and an eight-year compliance window, which allow for partial capture. The testimony provides evidence of CCS deployment in industrial and power sectors, including projects like the Dakota Gasification Plant and the Texas Clean Energy Project. It also addresses the economic viability of CCS, noting that enhanced oil recovery (EOR) can offset costs, and argues that U.S. geologic storage capacity is sufficient to handle power sector emissions for a century or more, countering concerns about induced seismicity.

The report argues that the current U.S. agricultural landscape is dominated by corn and soybeans due to federal subsidies, which contradicts national nutritional goals. Using economic modeling, the authors find that aligning production with healthy dietary guidelines would significantly increase fruit and vegetable acreage while reducing cereal grain production. Such a transition would likely improve public health, reduce environmental degradation from monocropping and livestock operations, and create new economic opportunities for farmers, particularly in the Midwest.

The study analyzes the impact of partial CCS deployment in Europe by 2030, categorizing countries as pioneers or laggards based on their R&D projects and national roadmaps. Using a dispatch model, the authors find that the economic outcomes of pioneering are heterogeneous: while electricity suppliers in Poland, the UK, and the Netherlands may see increased producer surpluses, consumers in the UK could face higher wholesale prices due to the high cost of gas-fired CCS. Conversely, Romania is projected to experience lower wholesale prices and increased domestic production. The results suggest that being a pioneer does not automatically guarantee an advantage, as benefits are unevenly distributed between producers and consumers.

The research examines the 'green paradox'—where climate policies may inadvertently accelerate fossil fuel extraction—within a two-period model that incorporates learning-by-doing (LBD) in the renewable energy sector. The authors find that while a present carbon tax consistently reduces current fossil fuel use, the impact of renewable energy subsidies is ambiguous and depends on the strength of the LBD effect. Specifically, large LBD effects can trigger the green paradox by significantly reducing future demand for fossil fuels, thereby incentivizing resource owners to increase extraction in the present. The paper concludes that a carbon tax is the most reliable tool for reducing immediate CO2 emissions, suggesting that tax revenues should only be used to fund subsidies if the LBD effect is small.

The paper evaluates the Spanish "Renove" plan, which provides rebates for A+ labelled energy-efficient appliances. Using a model of close substitutes, the authors find that a standalone 80€ subsidy for dishwashers in the Basque Autonomous Community increases total market demand by 1.5%, leading to a "rebound effect" that increases the total energy bill by 197,399€ and costs the government over 1 M€. In contrast, a 40€ tax on non-efficient appliances reduces total appliance demand by 1.6%, generates approximately 0.8 M€ in revenue, and saves nearly 300,000€ in energy costs. The authors argue that combining taxes and subsidies can optimize outcomes; for example, a 40€ subsidy paired with a 20€ tax avoids a deficit, prevents the rebound effect, and reduces deadweight loss compared to single-instrument policies.

The analysis argues that the Keystone XL pipeline's impact on global GHG emissions may be significantly higher than previously estimated if it increases global oil supply and lowers prices, which in turn stimulates demand. The authors model three scenarios regarding whether oil sands production would reach the market via alternative transport if the pipeline were rejected. In the case where no oil would otherwise reach the market, the study finds that global oil use could increase by up to 510,000 barrels per day, leading to an annual increase in GHG emissions of up to 93 million tCO2e. This potential increase is four to five times greater than the emissions resulting from simply displacing average crude with oil-sands crude and represents roughly 10% of the U.S. government's pledged emission reductions for 2020.

The report uses a computable general equilibrium (CGE) model to simulate two scenarios: a reduction in global beef consumption and a combined scenario of reduced beef and increased poultry/pork consumption. The findings indicate that reducing beef consumption leads to significant declines in cattle production and pasture land, particularly in the US, Latin America, and Australia. In the US, a beef-only reduction would decrease cereal grain acreage by 4% (3.5 million acres) and pasture land by 16% (100 million acres). The combined scenario shows that while beef production falls, poultry production increases significantly in regions like India (166%) and the US (36%), with global pasture land reductions totaling millions of acres across several regions.

The report examines how unilateral carbon pricing leads to carbon leakage—where emissions are shifted to foreign locations—across energy-intensive industries (EII) such as steel, cement, and chemicals. It evaluates the effectiveness of various policy remedies, including border adjustments and output-based free allocations, across different regional contexts. Findings indicate that while the EU can mitigate leakage from a 30% reduction target at moderate cost, a mandatory Japanese ETS would significantly impact steel and cement production. In China, a carbon price of 100 Yuan/t CO2 would most affect ferrous metals, basic chemicals, refining, and cement, potentially serving as a tool to reduce carbon intensity and restrain exports during high growth periods.

The research examines the interplay between climate mitigation and economic development using the CRED integrated assessment model. It finds that while climate and development policies are largely independent under extreme assumptions of climate risk (very mild or very serious), they are deeply interconnected under intermediate assumptions. Specifically, the study identifies a threshold where significant resource transfers from high-income to low-income regions are necessary to make emission reductions economically attractive for poorer nations, thereby enabling global climate stabilization.

The report argues that investments in clean energy and environmental protection generally create more jobs than the fossil-fuel industries they replace. Through a survey of 36 studies and original analysis using IMPLAN 2009 data, the authors find that non-fossil-fuel sectors have significantly higher job-to-spending ratios. A case study on eliminating coal and nuclear power by 2050 suggests a potential net gain of over 21 million full-time equivalent (FTE) jobs, although it notes that workers in fossil-fuel sectors would face real layoffs and require retraining.

The study finds that CCS deployment in Germany would lower spot market electricity prices and reduce imports from France, Belgium, and Poland, while increasing producer and consumer surpluses.

The report identifies a 'policy gap' between business-as-usual emissions and the 2,000 Gt CO2 budget needed to stay below 2°C. It demonstrates how adjusting three modeling assumptions—climate damage estimates (Reason), discount rates for future generations (Empathy), and cross-regional investment (Fair Play)—transforms the recommended policy from a 'Weak Conventional' approach to a 'CRED Optimal' scenario that achieves an 83% chance of staying below 2°C while reducing global inequality.

The report uses three sector-specific engineering models to evaluate how carbon prices affect the competitiveness and leakage risk of Spain's cement, steel, and oil refining industries. It finds that coastal cement regions and the oil refining sector are particularly vulnerable to leakage, while the steel sector's risk is mitigated by a high prevalence of Electric Arc Furnace (EAF) technology. The authors suggest that border tax adjustments are generally more effective and practical than output-based free allocations for reducing leakage in these sectors.

The report analyzes the complex relationship between China's foreign direct investment (FDI), outward direct investment (ODI), and international trade with the environment. It identifies a historical trend of 'exchanging environment for economy' and argues that China must transition from a passive recipient of green technology to a proactive leader in global green transformation. Key recommendations include reforming FDI policies to prioritize high-tech and low-carbon sectors, enhancing the corporate social responsibility (CSR) of Chinese enterprises operating abroad, and actively participating in the formulation of international trade and investment rules to safeguard developing countries' interests while combating climate change.

The briefing explains how the CRED model differs from conventional climate-economics models, such as DICE, by integrating 'reason, empathy, and fair play'. It asserts that to maintain a high probability of keeping temperature increases below 2°C, cumulative twenty-first century CO2 emissions must be limited to 2,000 Gt. The document highlights that 'business-as-usual' emissions would reach 7,800 Gt, necessitating the elimination of 5,800 Gt. The CRED Optimal scenario achieves a successful climate outcome and reduces global inequality through rich countries investing in emission and poverty reduction in poorer nations.