Climate Policy

This project involves the development of an improved facility for economic analysis of the issues discussed below, which involve changing feedstock quality, fuel demand, and processing and related technologies. The main vehicle for the research is a set of enhanced versions of the MIT Economic Projection and Policy Analysis (EPPA) model. It is being applied to studies of the implications for fuel markets under evolving regulatory regimes.

This project aims to provide improved understanding of the complex interactions between climate change and conventional air pollution, which are linked because greenhouse gases and conventional air pollutants result from shared generation processes, they interact chemically in the atmosphere, jointly affect climate, and the impacts of these environmental changes have multiple and potentially non- marginal effects on economic activities.

Federal standards for fine particulate matter and tropospheric ozone have become increasingly stringent over the past several decades. States preparing attainment plans will be challenged with accounting for the regional and longer-range transport of these pollutants and their precursors and with the higher marginal costs of additional permanent or annual emissions reductions in the future.

The goal of this project is to illuminate the tradeoffs between conventional demand for land for agriculture and forestry with the new demands created by climate and fuels policy. Existing fuels policy, e.g. the Energy Security and Independence Act (ESIA), calls for a significant contribution of conventional and second generation biofuels to the US fuel supply. Climate policy (as expressed in, for example, H.R. 2454) could create further demand for biofuels and may divert land from food production to afforestation projects to sequester carbon.

The objective of this effort is to improve the way that technology and uncertainty are represented and treated in integrated assessment models (IAMs) of the coupled human-climate system. The research project will address key gaps in representing technological change and the treatment of risk and uncertainty within IAMs.

This project will evaluate the economic and technical potential of renewable-based power systems in Africa under a trading regime. Linking hydropower generated in river basins across the continent has the potential to smooth annual and seasonal fluctuations in hydropower output and enable larger penetrations of intermittent renewable energy technologies.

In this project we are using a global economic model with land-use linked to a model of vegetation and soil processes to investigate how to extend carbon taxes to create incentives to avoid land use emissions or to increase carbon storage on land, or otherwise limit the climate implications of land use change. Carbon taxes could be a highly efficient policy tool for regulating emissions of CO2 and other greenhouse gases.

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