ENEC 201 Notes Week 3: 9/7/16-9/9/16
ENEC 201 Notes Week 3: 9/7/16-9/9/16 ENEC 201
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This 3 page Class Notes was uploaded by Hadley Ashford on Friday September 9, 2016. The Class Notes belongs to ENEC 201 at University of North Carolina - Chapel Hill taught by GANGI,GREGORY J in Fall 2016. Since its upload, it has received 31 views. For similar materials see ENVIRONMENT AND SOCIETY in Environment and Ecology at University of North Carolina - Chapel Hill.
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Date Created: 09/09/16
ENEC 201 Notes 9/7/16-9/9/16 9/7/16 - Conservatives dislike taxes, but will support revenue neutral taxes o Ex. implement carbon tax and use revenue to lower income tax - People in NE NC (area supplied by Roanoke Electric Co-op) pay more for electricity than house payments o Happens because houses are bad quality (cheap and inefficient) o Carbon tax not realistic/just in this area because too much of a burden on impoverished Solution: carbon tax, but use revenue to make homes more energy efficient so less need to use taxed energy - Cap and trade system: some businesses may have regional advantage and are able to sell/trade licenses o Ex. business near water can switch to hydroelectric and sell license to another company that is more dependent on coal o Hasn’t been successful in Europe because haven’t lowered cap to reduce emissions Simply concentrating emissions in wealthy countries because licenses so cheap Economy not strong enough to lower cap - US uses command and control policies to reduce environmental impact (not efficient) o Congress didn’t allow any other option Didn’t recognize CO2 as air pollutant, so couldn’t make policy around it o Federal government can also mandate efficiency standards One of few things that has bipartisan support in congress Ex. CAFÉ standards on cars (Corporate Average Fuel Efficiency): only stipulates limit put on average of cars sold- companies can sell gas guzzlers, but must also sell fuel efficient cars GM has incentive to sell a lot of electric cars in California (with stricter standards) so they can sell lots of gas guzzlers elsewhere Can set standards on household appliances- California started this in 1970’s Standards on buildings (houses, companies) - Energy efficiency increased family income creation of more jobs o Money saved through using less energy provides more disposable income o Extra income put into local economy People eat out more, join gyms, take classes, etc. - Incentivizing innovation: o Prizes to companies who innovate o “Proper regulation”: companies will innovate to meet standards and save money Ex. government should set emission standard and provide expensive solution- companies have incentive to innovate and save money while still meeting standards o Tax breaks for corporate R&D’s (research and development) o Government R&D is better than corporate Corporate R&D not beneficial in short run because competitors will make more money without spending on R&D Company performance judged quarterly on stock market- incentive to increase profits now - Make green energy cheaper: o Feed-in tariff: individuals/companies paid inflated price for producing own renewable energy (inflated to incentivize using renewable energy) Inflated price for renewable energy goes down over time to encourage immediate influx Larger scale of product on market makes it more affordable, which encourages increased use o Tax credits for renewable energy - Decrease energy used in transportation o Invest in public transportation o Congestion taxes to encourage public transportation 9/9/16 - Feed-in tariff: encourages people to produce renewable energy by paying them inflated price (fixed for 20 years) that goes down over time o Gave renewable energy producers priority access to the grid Forces grid operators to shut off non-renewable forms of energy o Uses subsidies to create a market o Economists generally do not support feed-in tariffs/subsidies: Subsidies’ goal is to grow an infant industry Industries will continue to fight for subsidies even when they’re no longer infants (unnecessary) Artificially alters competition in free market o Offer high price for producers at the beginning to encourage quick/large influx Grows market (scales up the industry) quickly Volume helps decrease price of materials/systems When someone gets on board late, they are paid less, but also pay less for materials/system Creates less competition/potential for monopolies - Reduce agricultural impacts: o Make farmer’s markets more accessible Incentivizes local food use/production o Get rid of subsidies that make meat artificially cheap Cheap meatincreased consumption increased production Meat production burns a lot of fossil fuels - Suggestions above are microeconomic tools to influence behavior - Policy models: bureaucratic model, elite model - Bureaucratic model (in democratic system): voters don’t have as much power as they think, but non-elected people have large impact on policy o Filter information, control access to certain people, interpret legislation o Non-elected officials give information to decision-makers and can spin info to influence them o Mostly applicable at local level: pays very little, so only those who don’t need income (wealthy) take positions o Non-elected officials interpret legislation (strict, loose, etc.) o Isn’t as effective at federal level because bureaucratic positions appointed instead of inherited o Patronage system: more positions appointed as government favors, political parties appoint their people in many areas of government - Elite model: government exists to serve interests of wealthy elite o Lobbyists o Campaign funds o PR/marketing o Use power to influence (ex. blackmail, bribes, etc.) o Iron triangle: interest groups puts money in government campaigns in exchange for favors agency Interest groups legislative branch o Agency capture: use money to determine who runs agency (creates biased system) Ex. national forest service became under control of timber industry only promotes interests of timber industry (reduced scope of issues covered) o Revolving door: method of agency capture Position in government is way to build network Each position is a gateway to something better- keep coming back in and out of government and each time get a higher position Makes it so current/former lobbyists write legislation